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Why is the Crypto Market Down Today Amid the End of the U.S. Government?

Why is the Crypto Market Down Today Amid the End of the U.S. Government?

Coinpedia2025/11/13 11:39
By:Coinpedia
Story Highlights

The crypto market continued with its recent bloodbath on Wednesday, November 12. Bitcoin (BTC) led the wider altcoin market in heightened selling pressure.

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The total crypto market cap dropped by 2% to hover around $3.42 trillion at press time. BTC price slipped below $102k again after the bullish momentum failed to gain traction.

The overall capital inflow to the crypto market has significantly declined in the recent past, as shown by the spot Bitcoin and Ethereum ETFs. Notably, Bitcoin’s Open Interest (OI) across all crypto exchanges has dropped to a seven-month low.

Why is the Crypto Market Down Today Amid the End of the U.S. Government? image 0 Why is the Crypto Market Down Today Amid the End of the U.S. Government? image 1

Source: X

Meanwhile, Polymarket traders have been betting that the Bitcoin price will continue to drop further in the coming days, potentially below $100k. 

Why is the Crypto Market Down Today Amid the End of the U.S. Government? image 2 Why is the Crypto Market Down Today Amid the End of the U.S. Government? image 3

Source: Polymarket

Following the wider crypto correction, more than $612 million was rekt from leveraged traders, with around $502 million involving long traders. The crypto market was also gripped with fear of a potential attack on Hyperliquid, the largest DEX futures platform.

It appears that Hyperliquid bridge has stopped processing withdrawals. No activity in 21 minutes pic.twitter.com/NFSeVHhE1t

— Conor (@jconorgrogan) November 12, 2025

Bitcoin price has led the wider altcoin market in bearish sentiment as gold investors enjoy more gains. As the wider crypto market recorded bearish sentiment in the past 24 hours, the Gold price surged 2% to trade at about $4,200 per ounce at press time. 

The technical headwinds in the wider crypto market coincided with the reopening of the U.S. government after 40 days of shutdown. Although the re-opening of the U.S. government is positive for the economy, the crypto market experienced a potential sell-the-news impact. 

The crypto bull market 2025 is likely to resume in the coming weeks fueled by the Fed’s money printing. Furthermore, Gold price has likely topped out and has been forming a macro double top, which is bullish for the wider crypto bull market.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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