Bitcoin has been taking a common route. It plummeted only weeks following the end of the U.S government shutdown on November 13, 2025. The same was witnessed in January 2019 when the Bitcoin plunged following the end of the shutdown. The recent drop is in the midst of a solid bull market and that is what makes the reaction even more dramatic.
Timeline and Market Impact of Shutdowns
The closure started on October 1, and it took 43 days. It was the longest in the history of the United States. By the time it was over investors scrurried to reprice risk. That change initiated a crypto market selling spurt. The change of sentiment was very abrupt and not expected by many traders.
Cryptocurrency analyst @cryptorover posted a graph of price movement of the two shutdowns. In 2019, Bitcoin fell almost 25 percent within seven days. The same is indicated in the 2025 chart. Bitcoin fell down to about 117,000 and may now check at 100,000-90,000. Such movement shows that the effect of macro events on the crypto market remains.
Massive Losses
Forced liquidations were the cause of most of the damage. In the bullish positions, traders were highly leveraged. After the market dropped those positions unravelled quickly. Bitcoin bottomed at an approximate of $3,200 in 2019. Traders are currently worried that there is further correction to be made in the event of an increase in the macro pressure.
Investor Waryness and Prognosis
Others feel that this correction gives a buying opportunity. Other people caution that the crash might be worsened by the uncertainty of the rest of the economy. Bitcoin may recover provided that the Federal Reserve reduces rates in the near future. Otherwise, this price may be lowered further. It is very important that this weekend puts the market direction.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
The five major giants control the billion-dollar crypto market: BlackRock is driving the Bitcoin ETF landscape, and competition on Wall Street is intensifying
By 2026, the U.S. crypto asset management market landscape is gradually taking shape, and major institutions use compliant tools such as ETFs to manage more than $100 billion in assets. BlackRock leads, followed closely by Fidelity and Grayscale, while Bitwise and Galaxy compete with differentiated strategies. Meanwhile, Morgan Stanley’s Bitcoin ETF application could reshape the market landscape, shifting the competitive focus to where the capital flows and the product structure.
GateNews4m ago
IMF Warns Global Imbalances Are Worsening: Tariffs May Fail or Push Capital Flows Toward Bitcoin and Stablecoins
Research by the International Monetary Fund shows that tariffs have a limited effect in regulating global trade deficits, and that the real influencing factors are macroeconomic policies. As global imbalances expand and financial risks rise, market structures may adjust, and crypto assets could become a tool for hedging uncertainty.
GateNews8m ago
Schwab Wealth Management opens Bitcoin and Ethereum trading: 38.9 million users enter, disrupting the crypto market landscape
Traditional finance giant Charles Schwab plans to launch “Schwab Crypto” in the second quarter of 2026, offering spot trading of Bitcoin and Ethereum to 38.9 million customers. This model will lower the investment threshold, change the previous way investors indirectly allocate to crypto assets, and meet market demand. Meanwhile, with low fees and a large customer base, Schwab may disrupt existing crypto platforms, and in the future it may also roll out stablecoin products to build a digital asset ecosystem.
GateNews16m ago
Big data is coming this Thursday: whether Bitcoin can hold $67k depends on the Fed’s signals
This week, the U.S. will release four macroeconomic data points, including the FOMC meeting minutes and CPI data, which could determine whether Bitcoin can hold the $67k level. Bitcoin is currently trading in a range around $69k, with a 23% decline year-to-date. Market sentiment is subdued, and institutional capital support is limited, resulting in weaker demand—making this a key moment in the long-versus-short battle.
GateNews20m ago
A $20 million liquidation! James Wynn shorted Bitcoin and was liquidated, leaving his account with only $900
Well-known trader James Wynn failed to short Bitcoin on the Hyperliquid platform, was forced to close the position, and suffered losses close to $20 million. Over the past two weeks, he has already been liquidated 6 times, highlighting the risks of high-leverage trading. Bitcoin has recently rebounded, driven mainly by short-seller squeeze, and the market’s total capitalization has risen to about $2.35 trillion.
GateNews22m ago
