US government shutdown delaying crypto ETF approvals what does this mean for Bitcoin price and investor sentiment

7 replies 32 views
its_viperMember
Posts: 75 · Reputation: 242
#1Feb 26, 2017, 04:10 PM
So Congress failed to pass the federal budget in time, which basically means the US government is in shutdown mode right now, with most agencies on pause except for essential stuff. One direct consequence of this is that 16 crypto ETF applications sitting on the SEC's desk are now getting pushed back. We all know what ETF approval means for BTC. Institutional money gets a clean, legal way in, liquidity goes up, demand goes up, price follows. We've seen it play out before where just the news of an ETF getting the green light sends Bitcoin pumping. So naturally, this delay is making a lot of people nervous. Some are starting to doubt whether approval even happens at all, and because of that there's real concern that the current bullish momentum could fizzle out. Basically, the whole "Uptober" narrative for this quarter might not deliver like people hoped. On the flip side, a bunch of investors are pointing out that delayed is not the same thing as cancelled. The market understands this is a timing issue, not some fundamental shift in direction or a trend reversal. And if you look back at history, government shutdowns aren't exactly rare in the US. The 2013 shutdown actually coincided with a pretty big Bitcoin price spike. Then the shutdown that pushed ETF approval toward the end of 2023 didn't kill the bull run either, Bitcoin kept climbing regardless. On top of that, ETF demand in the market is way more solid now than it used to be. With big BTC holders like MicroStrategy and Metaplanet already in the picture, plus other major companies accumulating...
5 Reply Quote Share
RogueMoonFull Member
Posts: 110 · Reputation: 789
#2Feb 26, 2017, 07:46 PM
Yes, the US government shutdown has put many routine SEC work on hold, such as the Bitcoin ETF approval. But that doesnt mean the trend is lost. as previous user said, delayed does not mean denied, LoL.. Many institutions are still in line &  when the SEC returns to full force, approvals could be in full swing. And, when fiat looks weak (government shutdown, debt ceiling drama, inflation), many will look for alternatives, such as Bitcoin. Such demand pressure supports the growing trend, even during times of regulatory shutdowns. So no, I dont think this delay will break the trend. It is just a setback, but it is not the end of the story.
0 Reply Quote Share
proto_viperFull Member
Posts: 37 · Reputation: 344
#3Feb 28, 2017, 06:48 PM
Yes price rise of Bitcoin is not going to end, despite  fact that U.S. government shutdown holds up approval of Spot ETF. This is temporary delay and is not seen as complete rejection by experienced market which knows that shutdown creates worry regarding stability of U.S dollar and other regular money. This doubt actually pushes investors to assets with limited assets such as Bitcoin as safe value place. Also, large investors such as BlackRock and MicroStrategy have strong and steady demand, which means that approval is already expected. Although delay will not allow Bitcoin to reach its highest possible price in this month, current high upward movement, which is due to overall market trends, will be enough to continue rally, only at slower pace.
1 Reply Quote Share
b0ss2016Full Member
Posts: 74 · Reputation: 465
#4Feb 28, 2017, 09:11 PM
Although the approval of the ETF was delayed due to the US government shutdown, fundamental factors and market sentiment indicate that the upward trend of Bitcoin is likely to continue. So, this news might just be a minor setback. There is a small influence causing the market to slightly move towards securing assets. But I believe that if the market conditions still have strong confidence in the history and future of BTC, I think the price will continue to head towards the best value. Poor FOMO conditions always serve as decoration in the journey of the crypto market.
3 Reply Quote Share
johnkingSenior Member
Posts: 298 · Reputation: 1767
#5Mar 1, 2017, 02:18 AM
The government shutdown, combined with the adverse effects of Trump’s tariff policies, is weakening the dollar. These uncertainties are causing investors to avoid US assets and redirecting funds to assets like Bitcoin. But the ETF approval that is being delayed is not mainly related to Bitcoin.  The SEC is considering about ninety applications for altcoins, such as Solana, XRP, Cardano, Litecoin, and Dogecoin. Since the SEC can only handle emergency cases during this shutdown these ETF applications would have to wait until the shutdown ends. Hopefully, they will get approval and the market will regain momentum.
3 Reply Quote Share
planktonSenior Member
Posts: 473 · Reputation: 1384
#6Mar 1, 2017, 08:09 AM
And after the news of the US government shutdown, the price did go up and we just hit a new all time high. So we can say that it has no negative effect on the financial market itself. On the contrary, it might have made investors to hedge their money on Bitcoin and any other assets for that matter while waiting for the US government to resume. I don't think that those in the US will have to make things complicated on their own, sooner or later they will have to make that decision to resume everything so that we can all function and all delays will have to look at, not just ETF approvals but all other that will affect the lives on the US citizens.
3 Reply Quote Share
w1z4rd100Senior Member
Posts: 302 · Reputation: 1279
#7Mar 1, 2017, 10:24 AM
There are some upcoming ETF approvals, but most of them are altcoins, and some of them are not sure to get approved. But for me, as we all know Bitcoin ETF is huge right now in the market, high volume are keep coming in on ETF plus Bitcoin keeps creating new all-time high. here are some list I found on X:
2 Reply Quote Share
calmfalconSenior Member
Posts: 181 · Reputation: 966
#8Mar 1, 2017, 12:46 PM
There are tons of situations where government shutdown would make it bad. So, we need to focus on just the future and we can do a lot better and there aren't that many considering the future and how it will not be okay if this gets done without anything better. What we are seeing at the moment, is democrats and republicans do not agree on the medical situation, the free medical help to millions who are in need. Republicans claim it's for illegal aliens, democrats say that no illegal immigrant gets it and it's for the American citizens who are poor. That is the most important and obvious period and if democrats are right, and it's for just poor Americans, and republicans are against it, that could be doom for their future.
2 Reply Quote Share
?Reply
Sign in to reply to this topic

Related topics