The US federal government entered a shutdown today after Congress failed to pass a funding bill for fiscal year 2026.
The impasse stems from a standoff over healthcare and budget priorities between President Trump and leaders of the Democratic party in the Senate. Failure to fund the government means all but “essential” services will be paused until a deal is reached.
The duration of the shutdown remains uncertain. Past shutdowns have stretched from a few days to several weeks. The Congressional Budget Office has warned that up to 750,000 federal workers could be furloughed if the standoff persists.
Markets react
Major cryptocurrencies had mixed reactions following news of the shutdown, with Bitcoin posting a 0.22% gain from the time of the announcement to 7:20 UTC. XRP rose 0.68%, Solana gained 0.90%, while Ether held steady on the news.
US stock indices fared poorly, with DOW, S&P 500, and NASDAQ futures losing ground between 0.30% and 0.45% before market opened.
The dollar index (DXY), a measure of the USD relative to foreign currencies, also slipped 0.32% amid investor concerns over the US economy. Gold rose again, touching $3,868 per oz, within range of its recent all-time high.
Look ahead
A shutdown would risk pushing back the release of critical US economic data that the Federal Reserve, markets, and analysts rely on to make decisions. That includes trade data, non-farm payrolls, the JOLTS job-openings report, weekly unemployment claims, and inflation metrics.
Furthermore, all upcoming legislation in Congress and regulatory actions at federal agencies will be delayed, including work to advance federal crypto policies, many of which have been underway since the beginning of this year.
