Bitcoin News Today: Government Shutdown Siphons $700B, Accelerating Bitcoin's Bearish Turn

The U.S. government shutdown, now tied for the longest in history at 35 days, has exacerbated a liquidity crisis that has drained $700 billion from financial markets through the Treasury General Account (TGA), according to analysts. Bitcoin, the largest cryptocurrency by market capitalization, has fallen nearly 19% from its October all-time high, trading at around $102,600 as of Nov. 4. The TGA's balance has surged to $1 trillion, siphoning capital from the private financial system and stifling lending and investment, BitMEX analysts told Decrypt. This has pushed overnight repo (SRF) usage to record levels, further starving risk assets of liquidity.

The shutdown, which began on Oct. 1, has paralyzed federal agencies and disrupted services, including food aid programs. Lawmakers from both parties are pinning hopes on Tuesday's elections as a "catalyst" to end the impasse, according to Newsmax. Senate Majority Leader John Thune (R-SD) and House Speaker Mike Johnson (R-LA) have signaled optimism that post-election negotiations could yield a deal to reopen the government by the end of the week. However, the Senate's 14th attempt to pass a continuing resolution failed on Nov. 4, with only three Democratic-aligned senators supporting the GOP-backed measure, according to Barron's.

Meanwhile, Interior Secretary Doug Burgum has drawn criticism for a high-profile Middle East and Europe trip to promote U.S. oil and gas exports, even as national parks face damage and furloughs. Democrats accused him of neglecting his oversight responsibilities during the crisis, according to The New York Times. Burgum defended the trip as critical to advancing energy policy, but critics questioned the ethics of taxpayer-funded travel amid the shutdown.

The crypto market, already reeling from macroeconomic pressures, faces additional headwinds. BitMEX analysts argue that the government shutdown has accelerated a correction in Bitcoin's four-year bull cycle, which analysts previously expected to peak in 2024 with the approval of U.S. spot Bitcoin ETFs and the halving event. The current turmoil, they noted, aligns with historical patterns where Bitcoin peaks near the end of its cycle before plunging 70-80% in the following year.

Despite the downturn, crypto industry players continue to expand. Jackbit, a no-KYC crypto casino, announced global expansion efforts in 2025, leveraging AI-driven personalization and instant payouts via smart contracts to enhance user engagement, according to GlobeNewswire. Meanwhile, MoonPay integrated with Pump.fun to enable instant crypto purchases via Apple Pay and Google Pay, reducing onboarding friction for Solana-based traders, according to PR Newswire.

The Federal Reserve's Standard Repo Facility (SRF) has become a key indicator of the liquidity crisis, with rising usage reflecting cash shortages among financial institutions. BitMEX analysts remain bullish on a "snap-back" rally when the shutdown ends, expecting trillions in liquidity to return to markets and align with Bitcoin's seasonal strength.