Three major altcoins outperformed the broader cryptocurrency market on Wednesday, with Solana gaining 6.3% to $220, Dogecoin climbing 7.7% to $0.245, and ADA advancing 6.6% to $0.84. The overall crypto market capitalization increased 3.3% during the same period.
Source: CoinMarketCap
Congress failed to pass a continuing resolution Tuesday night, resulting in the first government shutdown since 2018. Despite analyst warnings about potential volatility from delayed economic reports, crypto markets demonstrated resilience.
Bitunix analysts noted that prolonged shutdowns could delay data releases and suppress economic activity, potentially strengthening expectations for looser monetary policy. Safe-haven demand provides short-term support for the dollar and Treasuries, though outcomes depend on Federal Reserve actions.
The Federal Open Markets Committee will convene in late October to determine interest rate adjustments. Lower rates typically benefit risk-on assets, including equities and cryptocurrencies. Prediction market platform Myriad shows 74% of users expect a 25-basis-point cut at the next FOMC meeting.
Bitcoin surpassed $117,000 for the first time in two weeks, gaining nearly 4% from the previous day. Ethereum similarly advanced 5% over 24 hours, crossing the $4,300 threshold.
Traditional markets also shrugged off shutdown concerns. The S&P 500 closed near its monthly high on Tuesday despite a 3% uptick in the CBOE Volatility Index.
QCP Capital analysts characterized the shutdown as a market non-event beyond data delays and headline noise. Essential services continue to operate, and back-pay provisions limit income effects. Historical episodes haven't derailed risk assets, they noted.
Analysts now express certainty regarding ETF approvals for assets like Solana. Digital asset manager CoinShares reported $291 million in inflows to Solana exchange-traded products last week. The Rex-Osprey SOL + Staking ETF, which launched in July, attracted $21.5 million in weekly inflows and now holds $349 million in assets under management.