Bitcoin’s decline has continued this week, leaving many investors asking why Bitcoin price still dropping even after the government shutdown agreement moved forward. The crypto market fell again on Wednesday, with Bitcoin hovering near $103,000. Ethereum, Solana, and XRP also slipped during the same period.
The weakness arrives at a time when the shutdown’s end should boost market confidence. Instead, cryptocurrencies remain under pressure as traders react to interest rate worries and shifting investor behavior. Major outlets including Reuters and AP have reported that digital assets are losing momentum as markets wait for new economic data to return.
Bitcoin fell roughly 1.5% over 24 hours, bringing it more than 20% below its October record high. Ethereum dropped over 3%, Solana slid more than 5%, and XRP dipped more than 2% during the same period. These numbers reflect a broader slowdown across digital assets. Analysts say the biggest catalyst is investor caution around interest rate policy.
Concerns grew after new commentary suggested the Federal Reserve may not cut rates in December. When interest rates remain steady, interest-bearing assets such as bonds become more attractive. Cryptocurrencies do not yield returns, making them less appealing during tighter monetary conditions. Reuters reported that liquidity remains cautious until fresh economic reports are released after the shutdown delay.
Another factor is investor rotation. The S&P 500 and Nasdaq 100 both climbed earlier this week after lawmakers advanced a funding bill to end the shutdown. Crypto, however, continued its pullback. Analysts at Nexo told reporters that capital is moving back toward equities. Stocks responded positively to political progress, while Bitcoin and its peers failed to rebound.
Volume across major exchanges also remains lower than normal. Traders appear to be waiting on inflation data, employment numbers, and updated Fed projections. Until those reports arrive, sentiment is fragile. As a result, Bitcoin price still dropping despite broader optimism elsewhere in markets.
Short-term reactions show traders prefer safer or more measurable assets. Rising Treasury yields have drawn large inflows as investors position cautiously. Analysts say this reduces immediate demand for highly volatile cryptos. XRP, Solana, and Ethereum prices reflect that shift, with each experiencing sharper losses than Bitcoin during the last 24 hours.
Long-term investors remain in wait-and-see mode. They expect volatility to continue until December’s policy meeting. The shutdown’s end may restore normal market operations, but experts note that does not guarantee a crypto rebound. AP reported that economic uncertainty remains high, and the digital asset market is reacting accordingly.
