**Why Is the Crypto Market Down Today Amid the End of the U.S. Government Shutdown?**
Bitcoin (BTC) led the wider altcoin market in heightened selling pressure today. The total crypto market capitalization dropped by 2%, hovering around $3.42 trillion at the time of writing. BTC price slipped below $102,000 again after the recent bullish momentum failed to gain traction.
### Main Reasons Why Crypto Dropped Today
**1. Low Market Demand Amid Notable Fear of Further Crypto Capitulation**
The overall capital inflow to the crypto market has significantly declined in recent times, as evidenced by the performance of spot Bitcoin and Ethereum ETFs. Notably, Bitcoin’s Open Interest (OI) across all crypto exchanges has dropped to a seven-month low, indicating reduced trading activity and investor interest.
**2. Technical Headwinds and Sell-the-News Impact Due to the Reopening of the U.S. Government**
Bitcoin’s price led the wider altcoin market in bearish sentiment, while gold investors enjoyed gains. Over the past 24 hours, the crypto market recorded a generally bearish mood. Meanwhile, gold prices surged 2%, trading at about $4,200 per ounce at press time.
This technical sell-off in crypto coincided with the reopening of the U.S. government after a 40-day shutdown. Although the government reopening is positive for the economy, it triggered a potential sell-the-news reaction in the crypto market, where investors sold off positions following earlier optimistic expectations.
### Is the Bull Market Over?
Despite the current downturn, the crypto bull market is expected to resume in 2025, potentially fueled by continued monetary easing from the Federal Reserve. Additionally, gold prices appear to have topped out, forming a macro double top—often a bearish signal for gold—which may bode well for the wider crypto bull market ahead.
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Stay tuned for more updates on the evolving crypto landscape.
https://bitcoinethereumnews.com/crypto/why-is-the-crypto-market-down-today-amid-the-end-of-the-u-s-government/
