How have the U.S. government shutdown and delayed SEC reviews affected Bitcoin’s market behavior?
Correct Answer
The U.S. government shutdown and delayed SEC reviews increased uncertainty around crypto regulations and delayed ETF approvals, prompting more investors to view Bitcoin as a hedge and causing both higher volatility and inflows.
Why is this the correct answer?
This is correct because when regulatory clarity is postponed, some investors rush into assets like Bitcoin to protect against policy risks in traditional markets. The shutdown also held up official economic data, so traders leaned on crypto as an alternative store of value, fueling price moves.