Government shutdown Bitcoin impact: A well-known crypto trader, known to his 1,000-member Telegram group as “CryptoOracle,” is back in the spotlight after accurately predicting the US government shutdown and its ripple effects across markets. Now, he’s warning that the real storm may still be ahead.

Shutdown Prediction That Shook the Market

Just before the government funding deadline expired last week, the trader told members of his “1000 Crypto Trading” group that the looming shutdown would rattle both traditional and digital markets, as per a report. He predicted a sharp Bitcoin correction of 30%–40%, followed by what he called “the rally of the decade,” as quoted by The Street.

Bitcoin’s Temporary Fall Before a Massive Rebound

He wrote, “The shutdown will break liquidity first, then fix it later,” adding, “Expect a 30–40% Bitcoin correction — and then the rally of the decade. BTC to $250,000 is still on the table,” as quoted in the report.
At the time of his post, Bitcoin was trading around $110,000, supported by strong institutional demand and growing excitement around Bitcoin ETFs. Then came the deadlock in Washington, as lawmakers failed to reach a budget deal, forcing a partial shutdown of federal operations.

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Liquidity Crunch: Dollar Strength and Bitcoin Weakness

CryptoOracle believes the shutdown will temporarily strengthen the US dollar while draining liquidity from risk assets like Bitcoin. He told his followers, “The world still runs on dollar liquidity,” adding, “When that stops flowing, even Bitcoin gasps for air – but it’s also when the strongest hands reload,” as quoted in the report.

His short-term outlook remains bearish, targeting a drop to between $65,000 and $75,000, what he calls the “fear range.” He expects that range to trigger widespread panic and liquidation before a powerful rebound. Once Congress passes a funding deal and liquidity returns, he believes Bitcoin will resume its uptrend and eventually reach $250,000 within two years, as reported by The Street.

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Government Shutdown That Hit Hard

The government shutdown, now the second-longest in US history, has left roughly 900,000 federal employees furloughed and pressured both political and financial systems, as per the report. The largest federal workers’ union is now urging Democrats to back a Republican stopgap funding bill to reopen the government.

Why It Matters for Bitcoin and the Market

Historically, shutdowns have hurt market confidence and short-term growth, but this one has also tested Bitcoin’s role as both a speculative asset and a hedge against fiscal instability. While some investors flee to the dollar for safety, others view the turmoil as validation for decentralized finance.

CryptoOracle remains unfazed. Despite short-term volatility, he believes the same liquidity measures used to stabilize the economy after the shutdown will eventually fuel Bitcoin’s next big rally.

He said, “First comes pain, then comes price discovery,” adding, “The reset will cleanse leverage, kill greed – and pave the way for a true $250K breakout,” as quoted by The Street.

FAQs

How does the US shutdown affect crypto markets?
It disrupts liquidity, weakens investor confidence, and pushes traders to risk-off assets like the dollar, as per The Street report.

Why is Bitcoin tied to government liquidity?
Because global markets, even crypto, depend on dollar liquidity for short-term stability.