US Shutdown Ends: Liquidity Boost for Risky Assets Like Crypto

Stock
Author

author: CryptoNews

date: November 08, 2025

1 min. read

As the US government shutdown concludes, a wave of liquidity is expected to benefit riskier assets, including cryptocurrencies. Glassnode's Negentropic analysis highlights the crucial role of liquidity in market movements. The recent government shutdown led to an accumulation in the Treasury General Account (TGA), creating a temporary liquidity crunch impacting risky assets. However, with the resumption of government spending, funds will be released from the TGA, injecting liquidity back into the market. This reversal, coupled with factors like the potential end of quantitative tightening in December, possible interest rate cuts, and expansion of the Federal Reserve's balance sheet, could transform liquidity headwinds into tailwinds. This influx of liquidity is anticipated to trigger a rebound in risky assets, offering potential opportunities for investors in the crypto space and beyond. The end of the shutdown could signal a positive shift in market conditions. ```