Key points:

- The U.S. government shutdown is approaching after Congress failed to pass the funding legislation in time.

- The White House directed government agencies to prepare for a shutdown on January 31.

- The Senate approved the spending bill, but the House will consider it on Monday.

- Federal operations may be temporarily disrupted without swift action, but no direct impact on cryptocurrencies or digital assets is mentioned.

The partial shutdown of the U.S. government begins after the funding deadline expires.

Russ Vogt, the Director of the Office of Management and Budget at the White House, ordered agency heads to implement organized shutdown plans after Congress failed to complete its work before funding expired. Major agencies like the Department of Defense and **Department of the Treasury** are affected.

Immediate consequences include potential disruptions in operations across various federal agencies, pending the passage of the spending bill approved by the Senate in the House on Monday, February 2.

\u003e "Since it has now become clear that Congress will not complete its work before funding expires, affected agencies must now implement plans for an organized shutdown," said Russ Vogt.

Market and political reactions focus on potential disruptions and economic implications. Mike Johnson emphasized the urgency, indicating that the House will likely use a fast-track vote to expedite proceedings.

Bitcoin is down 23% over the past 90 days amid economic uncertainty.

Did you know? Government shutdowns typically lead to significant disruptions in federal programs, with the 35-day shutdown in 2019 being the longest in U.S. history.

According to CoinMarketCap, the price of Bitcoin (BTC) is currently $84,004.90, with a market cap of $1.68 trillion. Trading volume has decreased by 19.54% in the last 24 hours, and Bitcoin's market dominance is 59.12%. The price of BTC has fallen by 23.59% over the past 90 days.

(Daily chart of Bitcoin, screenshot from CoinMarketCap at 03:08 UTC on January 31, 2026. Source: CoinMarketCap)

Coincu research indicates that such government shutdowns may cause financial pressures, especially on industries reliant on federal programs. Experts note a lack of significant direct correlation with cryptocurrencies, but they warn of potential indirect effects on market confidence.

The partial shutdown is a result of disagreements over funding for the Department of Homeland Security.

The Senate passed a package including five funding bills for most agencies until the end of September, with a temporary extension for funding the Department of Homeland Security (DHS) for only two weeks to allow for discussions on agency reforms following the recent deaths of American citizens at the hands of immigration agents in Minnesota. Democrats rejected full DHS funding without new restrictions on federal detention operations.

Partial shutdown will begin at midnight on January 31 (Eastern Time), but it is expected to be brief, as the House of Representatives returns to session on Monday to vote on the package, which will then be signed by President Donald Trump, who supported the deal.

General context: This comes amid sharp political tensions over immigration policies, and it is expected that the shutdown will end relatively quickly compared to previous shutdowns, but disruptions may affect economic confidence and markets, including volatility in cryptocurrencies as recently seen with the drop in Bitcoin.

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