US government shutdown, ETF approval delays, investor sentiment on Bitcoin price

[Bluedrem]

As the US Congress has not been able to approve the federal budget on time, almost all government work is currently closed except for some emergency work. That is, the US is currently in a government shutdown. As a result, the approval of 16 pending crypto ETFs on the U.S. Securities and Exchange Commission (SEC) list is being delayed.
We know that if ETFs are approved, various institutional investors can legally and easily invest in Bitcoin, as a result of which the liquidity in the crypto market as well as the demand for Bitcoin also increases, which naturally increases the price of Bitcoin. For this reason, we have often seen that the announcement of ETF approval actually increases the price of Bitcoin. But the delay in ETF approval due to the US government shutdown has created doubts in the minds of many about the approval, as a result of which many people think that the current upward trend of Bitcoin may stop. That is, Bitcoin's Uptober in October of this quarter may fail or may not fully achieve its goal.
Again, some investors think that “delayed” does not mean “cancelled”. The market knows, this is not just a “time lag”, “trend reversal”.
If we look at history, we can see that the US government has shut down several times before.
The 2013 shutdown caused a significant increase in the price of Bitcoin. Again, the shutdown delayed the ETF until the end of 2023, but the upward trend of Bitcoin did not stop.
Also, the demand for ETFs in the market is much more stable now. With large Bitcoin holding companies like MicroStrategy, Metaplanet in the market and companies like BlackRock establishing a strong foundation for Bitcoin ETFs, I do not think that the approval of the upcoming ETF will have a major impact on the Bitcoin market.
Again, if we analyze the matter in another way, we can see that when a government shutdown is observed, investors are worried about the stability of fiat currencies, so they look for alternative value stores. In that case, they consider gold as an alternative value store and Bitcoin considering its popularity and strong performance at the present time. In this case too, the number of Bitcoin investors in the market increases, resulting in an increase in demand, which increases the price of Bitcoin.
Considering all these factors, I do not think that the upward trend of Bitcoin will stop even if the ETF approval is delayed.

Please provide your valuable opinion in this regard_

[Roberto888]

A delay isn't a denial. The underlying bullish factors for Bitcoin like institutional demand and its role as a hedge remain strong. History shows such shutdowns can even boost crypto. The trend is unlikely to reverse from this delay alone.

[₿itcoin]

Yes, the US government shutdown has put many routine SEC work on hold, such as the Bitcoin ETF approval. But that doesnt mean the trend is lost. as previous user said, delayed does not mean denied, LoL.. Many institutions are still in line &  when the SEC returns to full force, approvals could be in full swing.

And, when fiat looks weak (government shutdown, debt ceiling drama, inflation), many will look for alternatives, such as Bitcoin. Such demand pressure supports the growing trend, even during times of regulatory shutdowns.

So no, I dont think this delay will break the trend. It is just a setback, but it is not the end of the story.

[CryptoYar]

Yes price rise of Bitcoin is not going to end, despite  fact that U.S. government shutdown holds up approval of Spot ETF. This is temporary delay and is not seen as complete rejection by experienced market which knows that shutdown creates worry regarding stability of U.S dollar and other regular money. This doubt actually pushes investors to assets with limited assets such as Bitcoin as safe value place. Also, large investors such as BlackRock and MicroStrategy have strong and steady demand, which means that approval is already expected. Although delay will not allow Bitcoin to reach its highest possible price in this month, current high upward movement, which is due to overall market trends, will be enough to continue rally, only at slower pace.

[Luzin]

Although the approval of the ETF was delayed due to the US government shutdown, fundamental factors and market sentiment indicate that the upward trend of Bitcoin is likely to continue. So, this news might just be a minor setback. There is a small influence causing the market to slightly move towards securing assets. But I believe that if the market conditions still have strong confidence in the history and future of BTC, I think the price will continue to head towards the best value. Poor FOMO conditions always serve as decoration in the journey of the crypto market.

[Die_empty]

The government shutdown, combined with the adverse effects of Trump’s tariff policies, is weakening the dollar. These uncertainties are causing investors to avoid US assets and redirecting funds to assets like Bitcoin.

But the ETF approval that is being delayed is not mainly related to Bitcoin.  The SEC is considering about ninety applications for altcoins, such as Solana, XRP, Cardano, Litecoin, and Dogecoin. Since the SEC can only handle emergency cases during this shutdown these ETF applications would have to wait until the shutdown ends. Hopefully, they will get approval and the market will regain momentum.

[Yaunfitda]

And after the news of the US government shutdown, the price did go up and we just hit a new all time high. So we can say that it has no negative effect on the financial market itself. On the contrary, it might have made investors to hedge their money on Bitcoin and any other assets for that matter while waiting for the US government to resume. I don't think that those in the US will have to make things complicated on their own, sooner or later they will have to make that decision to resume everything so that we can all function and all delays will have to look at, not just ETF approvals but all other that will affect the lives on the US citizens.

[GreatArkansas]

There are some upcoming ETF approvals, but most of them are altcoins, and some of them are not sure to get approved.
But for me, as we all know Bitcoin ETF is huge right now in the market, high volume are keep coming in on ETF plus Bitcoin keeps creating new all-time high.


here are some list I found on X: