Will the US Government Shutdown Lower the Country’s Credit Rating?

Jakarta, Pintu News – A potentially lengthy US federal government shutdown may trigger a downgrade of the country’s credit rating. This negative signal could shake up traditional financial markets, but also open up new opportunities for the Web3 ecosystem. Read this article for the full story!

Impact of Government Shutdown on Credit Rating

The recent US government shutdown following a failed vote in Congress has major implications for the crypto market. There are strong reasons to believe that the government shutdown could affect credit rating downgrades. In 2023, Fitch downgraded the US credit rating following the 2018 government shutdown and another standoff in Congress.

Moody’s followed a similar move in May 2025, with a warning that further downgrades are possible if similar conditions persist. The average government shutdown in the US lasts only eight days. However, the 35-day Trump-era shutdown was a significant exception, raising the overall average duration of shutdowns.

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Long Impasse and Opportunities for Crypto

Currently, market predictions suggest that the shutdown will last for two weeks or more. This is cause for concern, but also opens up opportunities for the crypto market. Bitcoin’s (BTC) high performance on the first day of the shutdown is an important indicator.

While there is much controversy over how Bitcoin (BTC) will fare in a longer recession, the current situation provides an opportunity to gather valuable data. If the token market continues to rise during the shutdown and credit downgrade, it will be a strong signal that crypto can be a valuable hedge during a recession.

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Crypto Market Analysis and Predictions

On the first day of the close, the crypto market showed an impressive performance. This led to speculation that cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), might act as safe assets amid economic uncertainty. Market analysts suggest that if this trend continues, crypto could be considered a stable investment alternative in times of uncertainty.

Moreover, the increased interest in crypto during this period of instability indicates a shift in investor behavior from traditional to digital assets. This marks an important moment in the adoption of crypto as a key component in global investment portfolios.

Conclusion

The US government shutdown and the potential downgrade of its credit rating are worrying events for many. However, with every crisis comes opportunity, and crypto markets seem to be finding a new foothold as a reliable asset amidst uncertainty. Looking ahead, it will be interesting to see how the dynamic between traditional and digital financial markets will continue to evolve.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• BeInCrypto. US Shutdown & Credit Downgrade: Crypto Impact. Accessed on October 3, 2025
• Featured Image: Generated by Ai