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Bitcoin (BTC) resumed its downward trajectory on Thursday, falling toward $65,645 at the time of writing after once again failing to break through the major $70,000 resistance level.
The pullback in the leading cryptocurrency has rippled across the broader digital asset market, with large-cap tokens, including Ethereum (ETH), XRP, and Solana (SOL), posting similar declines.
Market expert Ash Crypto attributed the latest selloff to two primary forces: deteriorating US economic data and the rising likelihood of a federal government shutdown.
In a post published on X, he pointed to a series of weak macroeconomic indicators that have raised fresh concerns about the strength of the American economy.
US home sales declined by 8.4% last month, marking the sharpest drop in nearly four years. At the same time, initial jobless claims came in higher than expected, signaling potential softness in the labor market.
Taken together, these developments suggest the economy may be losing momentum, increasing the risk of a recessionary environment.
Compounding those concerns is the growing threat of a government shutdown. According to Ash, the probability of a shutdown occurring this week has surged to 96%. Such an event would likely weigh on both traditional financial markets and cryptocurrencies by tightening liquidity conditions.
He argued that the US economy is entering a period of turbulence that is already affecting equities, Bitcoin, and the broader digital asset market. In his view, market weakness could persist until there is a positive catalyst, such as a new trade agreement announced by President Donald Trump or a liquidity injection.
Technical analyst Crypto Rover shared similar concerns, warning that the “biggest threat to markets” has returned. He described the potential government shutdown as a serious liquidity hazard for financial markets.
An additional complicating factor is the recent increase in the US debt ceiling to $41.1 trillion. While raising the ceiling prevents an immediate default, it also gives lawmakers more room to prolong negotiations without instantly halting government functions.
According to Rover, this flexibility paradoxically raises the risk of an extended shutdown because neither side faces immediate financial pressure to concede.
The analyst also pointed to weakening labor market conditions, slowing retail spending, and rising corporate bankruptcies as evidence that the economic backdrop is deteriorating.
Ultimately, should a new shutdown materialize and persist for a longer period, the analyst warns that the liquidity drain could be significantly larger, intensifying pressure on both equities and cryptocurrencies like Bitcoin.
Featured image from OpenArt, chart from TradingView.com
