US Government Shutdown Slows Crypto Market Growth By $408 Billion – Analyst Explains

The cryptocurrency market has entered a turbulent section marked by intense promoting strain and heightened concern, as macroeconomic uncertainty weighs closely on buyers. Both Bitcoin (BTC) and Ethereum (ETH) have misplaced key assist ranges, signaling that bulls are dropping management and that the market has shifted right into a corrective section. However, some analysts argue that this setting represents alternative moderately than collapse — a reset section that would put together the bottom for stronger long-term development.

A significant catalyst behind the latest market weak spot has been the US authorities shutdown, which launched vital financial uncertainty. The halt raised international considerations about volatility and delayed essential regulatory progress, together with choices on Bitcoin and Ethereum ETF approvals. With official knowledge on inflation and employment briefly frozen, the Federal Reserve confronted elevated issue in guiding financial coverage, including to investor hesitation.

Despite this difficult backdrop, Bitcoin and Ethereum proceed to reveal resilience. Yet, the unstable political setting and disruption in monetary regulation have amplified danger notion throughout digital property. For now, the crypto market stays in a fragile equilibrium, caught between fear-driven promoting and opportunistic accumulation as merchants and establishments await readability on each coverage path and macroeconomic restoration.

Crypto Market Growth Stalls as Uncertainty Takes Hold

According to a latest report by CryptoQuant analyst GugaOnChain, the cryptocurrency market has skilled a pointy deceleration in development over the previous month, reflecting mounting investor warning amid macroeconomic uncertainty.

The evaluation of the Market Cap Growth Rate (MA Gap Ratio between 30-day and 365-day averages) revealed a steep slowdown between October 1 and November 10, leading to an mixture market capitalization lack of roughly $408 billion, in keeping with the on-chain Market Cap Comparison indicator.

Bitcoin (BTC), whereas remaining comparatively resilient, noticed its development charge decline from 16.75% on October 1 to six.60% by November 10. The prime 20 digital property, excluding BTC, additionally skilled a major slowdown, with their collective development charge falling from 32.29% to 14.67% in the identical interval. The most extreme affect was noticed in mid- and small-cap property, whose development charge collapsed from 18.57% to a close to standstill at 0.21% — a transparent sign of fading market momentum and danger urge for food.

The compression throughout all segments highlights how the absence of macroeconomic knowledge, coupled with regulatory delays as a result of US authorities shutdown, has heightened uncertainty. While Bitcoin continues to carry elevated ranges, the broader market stays fragile.

CryptoQuant analysts conclude {that a} sustained restoration depends upon coverage readability and the return of financial knowledge move. The resumption of presidency actions, inflation reviews, and potential ETF updates may assist restore investor confidence and reignite development throughout the digital asset panorama.

Crypto Market Cap Tests Crucial Support Amid Broad Slowdown

The complete cryptocurrency market capitalization presently stands round $3.48 trillion, displaying indicators of stabilization after weeks of persistent promoting strain. As seen within the chart, the market is consolidating close to the 50-week shifting common, a stage that has traditionally acted as an important assist zone throughout mid-cycle corrections. A decisive shut above this space may sign resilience, whereas a breakdown beneath it could open the door for deeper retracements towards the $3.2 trillion area.

From a structural standpoint, the broader market stays in an uptrend, however momentum has clearly weakened because the late-September peak close to $4.2 trillion. The declining quantity over the previous few weeks reinforces this cooling section, suggesting that market members are adopting a cautious stance amid macroeconomic and regulatory uncertainty.

Bitcoin’s relative stability above $100,000 has helped forestall a steeper market-wide correction, however the weak spot in altcoins continues to weigh on mixture valuations. If liquidity and investor sentiment enhance, the market may try a restoration again towards $3.8–$4 trillion within the coming weeks.

However, sustained macro uncertainty or extended consolidation in Bitcoin may prolong this era of stagnation, conserving complete crypto capitalization trapped throughout the present vary for the rest of This autumn 2025.

Featured picture from ChatGPT, chart from TradingView.com