US Government shutdown pressures crypto market ahead of volatile week
The partial suspension of the U.S. government has put the crypto market under pressure, forcing traders to brace for a volatile start to the week.
On Saturday, January 31, the cryptocurrency market fell by 3%, while many altcoins declined by 6–10%. Taking into account losses from previous days, weekly declines became significant for nearly all major altcoins. ETH, XRP, SOL, HBAR, and AVAX lost around 15%, while some others dropped by 17–20%.
The price of the 10 largest cryptocurrencies by market capitalization as of January 31, 2026. Source: CoinMarketCap
At the time of writing, Bitcoin was attempting to hold the $81,000 level, while ETH was trading near $2,500. However, earlier Binance announced plans to buy $1 billion worth of Bitcoin over the course of a month, setting a psychological support level at $80,000. As a result, further downside pressure on Bitcoin cannot be ruled out in the near term, with the market likely to test and defend this key support.
Awaiting a rebound on Monday
As noted by Coinpedia, government shutdowns traditionally have a negative impact on financial markets, increasing uncertainty, reducing liquidity, and triggering heightened volatility. Traders often delay major decisions until lawmakers take concrete action.
In the current environment, cryptocurrency price action will largely depend on signals from the House of Representatives on Monday. If progress on government funding is confirmed, Bitcoin could rebound by 2–4%, while altcoins may gain 5–8%.
At the same time, prolonged delays by lawmakers could reignite selling pressure and further increase volatility. Extended shutdowns typically lead to delays in the release of key economic data, such as employment and inflation reports, making risk assessment more challenging for traders.
As we wrote, Crypto market recap: Bitcoin holds near $83K
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