The U.S. government is facing a potential shutdown, and that’s making investors nervous. Along with concerns about how artificial intelligence is being valued and signs that the job market is slowing down, all eyes are now on what the Federal Reserve will say this week. Several important economic reports are also expected soon, but they might get delayed due to the shutdown.

These developments are creating uncertainty in the markets, especially in the cryptocurrency space. Bitcoin and Ethereum are feeling the pressure, showing more price swings than usual. Investors are becoming more cautious, pulling back from risky assets like crypto while they wait for more clarity.

What the Federal Reserve says about interest rates and the economy could have a big impact. If they hint at raising rates or tightening policy, it could make things even shakier for digital assets. On the flip side, any sign of support from the Fed could calm things down.

According to research from Coincu, if the government shutdown continues, it could cause problems in both funding and regulation across the financial and crypto sectors. History shows that past shutdowns, like the one in 2018-2019, have caused short-term volatility in Bitcoin and Ethereum. On-chain data is already showing possible outflows from decentralized finance (DeFi) platforms, a signal that investors may be moving their money out of riskier crypto assets.

Bitcoin is currently priced at $101,884.47 with a market cap of $2.03 trillion. Over the last 24 hours, it’s up by 2.46%, but it’s still down by 17.48% over the past month. The daily trading volume stands at $77.78 billion, and there are 19,945,978 BTC currently in circulation.

For crypto investors, this is a time to stay alert. With economic uncertainty rising, unpredictable price swings are likely to continue. Watching what the Federal Reserve says—and how long the shutdown lasts—will be key to understanding where markets are headed next.