Bitcoin Drops Amid 78% Odds of US Shutdown

Bitcoin’s price dipped below $87,000 amid 78% odds of a U.S. government shutdown by January 31, 2026, reflected in prediction markets and fueled by tariff threats from President Trump against Canada and the EU.

Bitcoin’s drop is notable as institutional investors exit due to shutdown risks, impacting financial stability and crypto market confidence.

The recent decline in Bitcoin’s price is linked to increased U.S. shutdown odds, based on prediction markets statistics. President Trump’s tariffs on Canada and the EU add tension. Chuck Schumer has indicated blocking spending packages without certain provisions’ removal.

The drop in Bitcoin, with prices falling to $87,000, is attributed to institutional outflows from Bitcoin ETFs, amounting to $1.7 billion. Additionally, Ethereum’s price also fell to $2,882, amplifying overall market concerns.

Financially, these events have resulted in Bitcoin’s significant reduction from its $126,200 all-time high. Further, $226 million in short liquidations and total market liquidations of $765 million underscore market volatility amid government instability.

The potential shutdown could cause delays in economic data and crypto regulatory approvals, influencing markets considerably. Historical data shows past shutdowns have led to significant impact on Bitcoin’s price, exemplifying potential regulatory and financial consequences on crypto assets.