Distributed Ledger: U.S. government shutdown could boost bitcoin price, crypto bulls say. Where is the coin heading to? 

by | Sep 28, 2023 | Stock Market

Welcome back to Distributed Ledger. This is Frances Yue, reporter at MarketWatch. The U.S. federal government is heading towards a partial shutdown Sunday morning, if Congress proves unable to pass relevant funding legislation before then.  Read: Government shutdown: House vote on stopgap budget expected Friday

Also read: U.S. government shutdown: Here’s how a partial closure could affect you I talked to a few industry participants to gather their views on how it could impact crypto. Find me on Twitter at @FrancesYue_ to share any thoughts on crypto or this newsletter. A bitcoin boost? David Tawil, president and co-founder at ProChain Capital, said a government shutdown could be positive for bitcoin, as it means that “not only individuals and institutions will get negative on sovereign governments that are dysfunctional, but their competence and fiat currency goes down further,” Tawil said.  Such a narrative could serve well for bitcoin, which has long been touted by its supporters as a non-sovereign reserve of value, and a potential hedge against the existing monetary system, noted Tawil. In March, Bitcoin rose over 23% on the back of the banking crisis in the U.S. The extent of boost bitcoin could get depends on the length and severity of the government shutdown, noted Tawil. “If the shutdown happens and lasts, for example, a couple of weeks, I can see us moving from where we are right now to at least $35,000,” Tawil said.  Bitcoin rallied almost 60% so far this year, but is still down over 60% from its all-time high in 2021, according to CoinDesk data.  Tal Cohen, managing director at Kraken USA, agreed that a government shutdown could be ben …

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