US Government Shutdown Hits Day 35 – Bitcoin News: Will Liquidity Hunters Push BTC USD Higher In November?

Core Insights - Bitcoin is currently trading around $103,960, nearly 20% below its October high of $126,500, marking its lowest level since late June 2025 [1] - The U.S. government shutdown has entered its 35th day, creating uncertainty in global markets and affecting liquidity [1][2] - The U.S. Dollar Index (DXY) has risen above 100 for the first time since August 1, indicating stronger demand for the dollar, which typically pressures risk assets like Bitcoin [2] Government Shutdown Impact - A U.S. government shutdown occurs when Congress fails to pass funding bills, leading to furloughed employees and halted services, which directly impacts liquidity and cash flow in financial markets [3] - During the shutdown, the U.S. Treasury General Account (TGA) has seen its balance increase to approximately $965 billion, a rise of roughly $150 billion since October, indicating money is being pulled out of circulation [4] - The Reverse Repo Program (RRP) has also increased by about $20 billion this week, further draining liquidity from the market [5] Liquidity Conditions - Bank reserves have dropped to the lower range of what the Federal Reserve considers "ample," leading to tighter funding conditions [6] - Rising SOFR spreads and record usage of the Standing Repo Facility (SRF) indicate a short-term liquidity squeeze, with banks borrowing over $10 billion recently, the highest since the SRF's launch in 2021 [6] - These liquidity pressures are contributing to Bitcoin's struggle to gain momentum and remain trapped in a choppy trading range [5][6]