Around $100 billion was wiped from the crypto market late Sunday. Traders sold amid fears of a partial U.S. government shutdown after a federal agent shot and killed a man in Minneapolis.
“I will vote no,” Senate Democrat Leader Chuck Schumer said, and warned Democrats would not advance the bill if DHS funding remained included. You can read the full statement here.
Data shows the crypto market cap fell from $2.97 trillion to $2.87 trillion within six and a half hours. Bitcoin lost 3.4% and Ether declined 5.3% over the last 24 hours.
Over $360 million of leveraged crypto positions were liquidated in the past day. About $324 million of those liquidations were long positions, according to Gate data.
Prediction markets showed roughly 80% odds of a shutdown by Jan. 31. Kalshi odds rose from below 10% to 78.6%, while Polymarket mirrored the surge.
Traders also reacted to Donald Trump‘s tariff threat against Canada. They noted U.S. warship deployments to the Middle East amid tensions with Iran.
During the prior 43-day shutdown, Bitcoin fell from near $126,080 to below $100,000, per CoinGecko. The Crypto Fear & Greed Index sat at 20 out of 100, marking extreme fear.
