Ongoing speculation suggests that the United States government may experience a shutdown at the end of the week. Furthermore, a recent report suggests that this will result in the indefinite suspension of the publication of inflation and employment data.
“As a result, the September jobs report and the Consumer Price Index would not be released,” a recent report revealed.
US Government Shutdown Potential for Uncertainty in Crypto Market
As per a recent report, a US government shutdown would trigger the cessation of report publications across all US government bodies:
“The suspension of the reports would occur across all government agencies such as the Labor Department’s Bureau of Labor Statistics (BLS) and the Commerce Department’s Census Bureau and Bureau of Economic Analysis (BEA)”
Additionally, the report highlights that this would leave monetary policy officials, investors, and American citizens “in the dark.”
BeInCrypto recently reported that the US government’s funding could potentially be depleted after September 30. A shutdown looms if Congress fails to reach an agreement and pass a spending bill by the month’s end.
In the past, Bitcoin has tended to go up in price when people expect the Consumer Price Index (CPI) to drop or have a modest increase.
It was reported on August 11 that just 48 hours after a modest 1% increase in inflation for July, Bitcoin’s price surged by 4%. This reached a new 2023 peak of $31,500.
Meanwhile, even with a mild 0.6% increase in reported inflation for August, Bitcoin’s price experienced a slight decline of around 1%, dropping from $26,178 to $26,125.
At the time of publication, Bitcoin’s price stands at $26,238.
Global Inflation Increases Leads to Wider Crypto Adoption
However, the absence of inflation data could create uncertainty among investors. The US government shutdown might lead them to consider alternative assets like Bitcoin and other cryptos over traditional fiat currency.
Meanwhile, it raises the question of what will occur regarding the pending Bitcoin ETF approval decision, which the SEC is scheduled to deliver on October 17.
Uncertainty surrounding inflation has spurred widespread adoption of crypto in other countries.
BeInCrypto reported on September 4 that more than 50% of Turkey’s population is investing in crypto.
Survey results suggested that a significant factor driving this trend is the Turkish Lira’s decline by over 50% against the US dollar.
Meanwhile, Australia reported an increase in its Bitcoin adoption in October 2022, when its inflation rate hit a 32-year high. At the time of reporting, the annual rate of inflation was 7.3%, the highest it has been since 1990.
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