There are rumors in the market that the U.S. government is about to shut down and crypto will take a heavy dump. Panic is everywhere — but let's understand the truth.
The U.S. government has to pass funding before January 31st. If politicians do not agree on time, a temporary shutdown may occur.
And this is where the liquidity game starts.
Crypto does not just move on news — it moves on liquidity.
Here is an important term: TGA (Treasury General Account) — basically the U.S. government's bank account.
When TGA increases, cash is sucked out of the system.
And when liquidity exits, risk assets are hit first — crypto included.
Now there are 3 possible scenarios:
1️⃣ Last-minute deal happens
➡️ Does not shut down
➡️ A short-term relief pump may come in the market
➡️ After that, direction will be decided by technicals
2️⃣ Deal fails, shutdown starts
➡️ Liquidity and tight
➡️ Both Stocks + Crypto dump
➡️ BTC & ETH sharp dip can be seen
3️⃣ Deal happens, but liquidity remains tight
➡️ Market slow & choppy
➡️ The chances of this scenario are the lowest
Looking at history, in the last shutdown BTC and ETH both took a strong dip. If it repeats, we can expect a similar pattern.
So what to do now?
Futures traders:
⚠️ Avoid high leverage
⚠️ Don't keep tight SL — shutdown headlines bring violent wicks
Spot traders:
✅ Don't panic
✅ If a shutdown dip comes, it could be the best buying opportunity
Coins to watch 👀
👉 Solana (SOL)
👉 Ethereum (ETH)
👉 XRP
Deep dip levels (spot planning):
🔹 $SOL → below $120
🔹 $ETH → below $2,000
🔹 $XRP → below $1.20
Keep an eye on liquidity, not on emotions.
I will meet again with the next update.
Thank you for following Pandatraders 🐼
Stay safe, stay sharp, stay blessed.#Bitcoin
