U.S. Government Shutdown Likely to Impact Markets

The likelihood of a U.S. government shutdown by January 31 has surged to approximately 78%, prompting investors to turn to safe-haven assets such as gold and silver. According to NS3.AI, this development has caused a significant drop in crypto market sentiment, which has fallen to 'Extreme Fear' on the Crypto Fear and Greed Index. Concerns over delayed economic data and increased market volatility are contributing to this sentiment. Historically, precious metals have shown strong rallies during government shutdowns, while cryptocurrencies like Bitcoin tend to experience increased volatility and downside risk. Investors are closely monitoring these trends as the situation unfolds.