Even as U.S. stocks and gold rose ahead of the House vote to end the government shutdown, Bitcoin prices tumbled Wednesday, dropping 3.6% from an intraday high of $105,316 to a low of $100,803.
The Dow Jones Industrial Average currently leads by 423 points, or 0.8%, led by gains in Goldman Sachs, JPMorgan Chase & Co. and American Express.
The S&P 500 rose 0.1% and the Nasdaq fell 0.3%. Gold rose above $4,200 and silver traded above $53.
At the time of writing, the price of Bitcoin is $101,640. As of 9:30 ET on Wednesday, the price of Bitcoin was above $104,500.
Trends in Bitcoin price decline and government shutdown
The decline in Bitcoin prices comes as investors pivot to traditional assets that have more exposure to economic policy. Analysts have suggested that profit-taking and lower institutional investor flows may also be contributing factors.
Despite the decline, Bitcoin price may be nearing a near-term bottom. According to BM Pro data, the net unrealized profit (NUP) ratio, a measure of coins held for profit, fell to 0.476. This is a level that has historically been associated with market bottoms. Similar readings were obtained in 2024, with a 15-25% rebound in the following month.
The U.S. House of Representatives is scheduled to vote today on a Senate-backed bill aimed at ending the record-long government shutdown. The White House has indicated that President Trump is ready to sign the bill as soon as it reaches his desk.
House Speaker Mike Johnson faces the challenge of rallying a narrow Republican majority, but remains “very optimistic” about securing passage.
The effects of the closure continue to be felt across the country. Nearly 900 flights were canceled today, but reports suggest air traffic control staffing issues are easing.
Millions of Americans, including SNAP recipients, remain in limbo after the U.S. Supreme Court’s decision to suspend full benefit payments.
Political tensions are rising as House Democrats seek accountability. Rep. Hakeem Jeffries criticized Senate Democrats for siding with Republicans on government funding measures, saying they need to “explain themselves.” Lawmakers are trying to balance party unity with public pressure to reopen the government.
The vote marks a critical moment in a prolonged government shutdown that has left federal workers unpaid and key services delayed. As pressure mounts on Congress to resolve the standoff and restore normal business, the administration is preparing to quickly implement its reopening plan once the bill is approved.
Fed split and market uncertainty
The market is also considering the possibility of the US Federal Reserve (Fed) cutting interest rates in December. Traders see a 72% chance of a 25 basis point rate cut, but officials remain divided between inflation concerns and slowing growth.
At its last meeting, Federal Reserve Chairman Jerome Powell suggested that a combination of internal policy disagreements and a lack of federal data made further rate cuts this year unlikely.
As widely expected, the Fed cut interest rates by a quarter of a percentage point to cushion potential weakness in the job market.
But Powell stressed that the continued disruption from the federal government shutdown has limited the release of key employment and inflation data, creating uncertainty for policymakers. The comments had little impact on Bitcoin price.
As of late October, Bitcoin’s price was around $109,000. Since then, Bitcoin’s price has continued to fall, even dipping below $100,000 several times last week.
In a press conference after the two-day meeting, Powell noted that the Fed relies on all available data sources, including private surveys, its own internal research, and informal interviews with business people across the United States.
Although he did not explicitly rule out a December rate cut, he compared decision-making in the environment to “driving in fog” and suggested the Fed may have needed to act cautiously.
The situation shows that the government shutdown, then in its second month, has stalled the release of economic indicators essential for making informed monetary policy decisions. This data gap complicated the Fed’s ability to respond quickly to changes in employment and inflation, even as President Donald Trump publicly pushed for further rate cuts.
This article, Bitcoin price plummets to $100,000 range ahead of US government shutdown vote, was originally published in Bitcoin Magazine and was written by Mika Zimmerman.
