Bitcoin Price Plunges to $100,000 Range Ahead of U.S. Shutdown Vote

Bitcoin price fell sharply on Wednesday, dropping 3.6% from an intraday high of $105,316 to a low of $100,803. This decline occurred even as U.S. stocks and gold climbed ahead of the House vote to end the government shutdown.

• The Dow Jones Industrial Average rose 423 points (0.8%), led by gains in Goldman Sachs, JPMorgan Chase, and American Express.
• While the S&P 500 increased 0.1%, the Nasdaq slipped 0.3%.
• Gold prices climbed above $4,200, and silver traded over $53.

At the time of writing, Bitcoin was priced at $101,640, having started earlier at over $104,500. The volatility in Bitcoin prices signals increasing focus on traditional assets amid broader economic dynamics.

The Bitcoin price decline aligns with investor movements toward traditional assets influenced by clearer economic policy implications. Analysts point to profit-taking and lower institutional flows as significant contributing factors.

Despite this pullback, there are indicators of a potential short-term bottom for Bitcoin. Its Net Unrealized Profit (NUP) ratio, which measures coins held in profit, dropped to 0.476 (according to BM Pro data), a level historically linked to market bottoms. Similar patterns in 2024 led to rebounds of 15–25% within the following month.

The U.S. House of Representatives is set to vote on a Senate-backed bill to end the record-long government shutdown, with the White House signaling that President Trump is prepared to sign it once approved.

House Speaker Mike Johnson is working to secure passage despite the challenges of rallying a narrow GOP majority, but he remains 'very optimistic'.

The shutdown continues to have significant impacts across the country:

• Approximately 900 flights were canceled today, though air traffic controller staffing issues are improving.
• Millions of Americans are still affected, including recipients of SNAP benefits, which remain on hold following a Supreme Court decision.

Meanwhile, political tensions are rising as House Democrats press for accountability. Rep. Hakeem Jeffries criticized Senate Democrats who sided with Republicans, stating they 'will have to explain themselves'. Lawmakers are working under a dual pressure of maintaining party unity and addressing public demands to reopen the government.

The vote marks a key moment in the ongoing shutdown, which has left federal workers without pay and delayed critical services. Congress faces mounting pressure to resolve the standoff.

If passed, the bill will allow the government to reopen promptly, with the administration citing readiness to implement the plan immediately. This shutdown has increasingly strained not only federal workers but also the broader economy, raising the stakes for all involved in the political process.

Markets are responding to the potential of a December rate cut by the Federal Reserve, with traders assigning a 72% probability of a 25-basis-point reduction. However, Federal Reserve Chair Jerome Powell has highlighted divisions among officials between inflation concerns and slowing growth, suggesting that further rate cuts may be unlikely.

During the last meeting, the Fed reduced rates by 1/4 percentage point to safeguard against potential job market weakening. Powell emphasized that the ongoing government shutdown limited access to key employment and inflation data, complicating monetary policy assessments. This uncertainty has also negatively impacted Bitcoin prices.

At the time, Bitcoin’s price was around $109,000 in late October. Since then, it has continued to slump, even falling below $100,000 on several occasions.

Powell acknowledged that due to the shutdown, the Fed had relied heavily on private surveys, in-house research, and informal interviews with executives. He compared decision-making to 'driving in the fog', given the lack of government-provided indicators. This data gap has hindered the Fed's ability to adjust monetary policy effectively, even as President Donald Trump pushed for further rate cuts.