#美政府停摆危机 These past few days, the global financial markets have been extremely volatile. Bitcoin fell below $80,000 last night, with a low of around $75,000. It has since rebounded to $79,000, but ultimately failed to hold the crucial support level of $80,000. So, does this mean we are truly entering a bear market?

In fact, the biggest declines in the past two days have been in the precious metals market, namely gold and silver. Gold has dropped by 15% over two days, while silver has fallen even more sharply, with a maximum decline of 35% in two days. This also shows that financial investments are not only characterized by continuous gains or continuous declines; markets are always fluctuating.
The reason for the sharp decline is that gold and silver had previously surged too aggressively, entering a high point of a precious metals bull market acceleration. Therefore, this recent plunge can be seen as unexpected by many, but it can also be viewed as an inevitable result after the peak of the precious metals bull market.

The US stock market has also experienced a slight decline in the past two days, but the drop is not as dramatic as that of gold and silver.
Yesterday, some government agencies in the United States officially went into a partial shutdown. It is expected that this shutdown will not last as long as the previous one. Additionally, voting by House members has not yet begun, as the official vote cannot start until February 2. If the vote passes, the shutdown may end.

A bite from a snake makes one afraid of a well for ten years. Many investors worry that the US government shutdown will impact the crypto market. This recent plunge is also a reaction to market fear, because during the last shutdown, which lasted over 43 days, Bitcoin fell by 10%.
Bitcoin usually performs weakly during government shutdowns. This decline is often caused by tightening market liquidity, decreased investor risk appetite, panic selling driven by fear, and increased uncertainty in fiscal policy.
In fact, over the past two years, the factors accelerating the crypto bull market are also related to the sharp rise in gold prices, as funds have shifted away from the crypto industry. Many retail investors have been attracted to gold trading during this period.

It is believed that after the gold trading frenzy subsides, some funds will flow back into the crypto market. Coupled with many long-term favorable factors, this will surely give a boost to the crypto market.

As always, those who can hold on will succeed; those who cannot will be forced out. The winter is over, and let’s look forward to the coming spring.