[Bitop Review] Despite U.S. Government Shutdown, S&P 500 Hits New High, BTC Returns to 118K

U.S. Government Officially Shuts Down, Senate Won't Vote Again Until Friday

The nonpartisan Congressional Budget Office estimated on Tuesday that the government shutdown would force about 750,000 federal employees to be furloughed. President Trump has threatened that during the shutdown, the government will permanently lay off federal employees on a massive scale, adding new economic risks to this shutdown.

Although Vice President JD Vance revealed at a White House press briefing on Wednesday that if the government shutdown persists, the Trump administration would indeed “have to make cuts,” he added that the layoffs have not been finalized. However, he does not believe the shutdown will last that long and added that “there is evidence that moderate Democrats are starting to crack.”

This time, the market may focus on the duration of the government shutdown, as a prolonged shutdown could delay the release of key economic data before the Federal Reserve's late‑October meeting. The Senate budget negotiations are currently on recess due to Yom Kippur, and senators are expected to wait until Friday to vote again, meaning the spending impasse will last at least three days. The U.S. Department of Labor stated on Friday that nearly all economic activities will be shut down, meaning the September nonfarm payrolls report will not be released this Friday.

Little Nonfarm Data Surprises to the Downside, Strengthening Investor Expectations for Rate Cuts

The ADP job openings data for September, commonly known as the “little nonfarm,” dropped by 32,000, marking the largest decline in two and a half years. This reinforced expectations for a Federal Reserve rate cut this month, leading to a rise in U.S. Treasury prices, with the 10‑year Treasury yield falling 5 basis points to around 4.1%. The Bloomberg Dollar Index remained stable, while gold prices rose slightly to a new high.

Meanwhile, some investors analyzed the impact of past shutdown events and found that such events do not last long and usually have negligible effects on the macroeconomy.

BTC Reclaims to 118K, Crypto Market Cap Back to $4 Trillion

The crypto market rose 3.81%, with its market cap returning to the $4 trillion milestone.

Bitcoin's dominance rose to 58.89%, driven by recent ETF fund inflows and continued buying from digital asset finance companies (DAT). Bitcoin reserve strategy pioneer MicroStrategy (formerly known as MicroStrategy) surged over 5% for two consecutive days, closing at $338.41 yesterday.

Ethereum (ETH) also surged nearly 5%, standing above $4,300, SOL returned to $220, and cryptocurrencies rose across the board, while the Fear & Greed Index remained at a neutral level of 42. Influenced by the overall market rally, short positions were liquidated yesterday, with about $475 million in positions cleared within 24 hours, led by $260 million in Bitcoin and $155 million in Ethereum. In contrast, the recently hot listings XPL and ASTER saw significant liquidations of long positions due to sharp price pullbacks.

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