US Shutdown Slows Crypto Market Growth by $408B, Says Analyst
The recent US government shutdown has injected macroeconomic uncertainty into financial markets, delaying key regulatory decisions on Bitcoin and Ethereum ETFs. This uncertainty has directly stalled crypto market growth. According to CryptoQuant analyst GugaOnChain, the Market Cap Growth Rate decelerated sharply between October 1 and November 10, wiping out roughly $408 billion in aggregate market capitalization. Bitcoin’s growth rate fell from 16.75% to 6.60%, while the top 20 altcoins (excluding BTC) saw a drop from 32.29% to 14.67%. Mid- and small-cap assets were hardest hit, with growth collapsing to just 0.21%, signaling fading risk appetite.
Total crypto market capitalization now hovers around $3.48 trillion, consolidating near the 50-week moving average—a critical support zone. A decisive breakout could reignite growth, but continued regulatory delays and frozen economic data flow keep the market fragile. Traders await the resumption of government operations, next inflation reports, and potential ETF updates to restore confidence and drive renewed crypto market growth.
Bearish
The US government shutdown has heightened macroeconomic uncertainty and stalled regulatory progress on key crypto products like Bitcoin and Ethereum ETFs. This lack of clarity has undermined investor sentiment, leading to a $408 billion drop in market cap growth and a sharp deceleration in crypto market growth rates across asset classes. Historically, similar shutdowns—such as in October 2013—triggered short-term volatility and risk-off trading. In the short term, continued data freezes and policy delays may sustain selling pressure. Long term, once government functions resume and inflation data returns, clearer ETF rulings and fiscal guidance could restore confidence, setting the stage for renewed accumulation and a recovery in market momentum.