After waiting anxiously for 43 days, a glimmer of hope finally appeared, only to be followed by a market-wide plunge. The story behind this is far more complex than it seems on the surface.

The prolonged government shutdown finally came to an end. Normally, this should be great news—yet the market slapped everyone’s face hard. Bitcoin dropped from a high of $106,000 all the way below $94,000, Ethereum followed closely behind, and the total liquidation amount in the crypto space exceeded 7 billion RMB. Traditional US stocks also didn’t fare much better, with the Nasdaq and S&P 500 remaining sluggish. The usual rules of history have completely failed this time.

**Shutdown lifted, but the market instead retreats**

These 43 days broke US historical records. The government reopening should have been fantastic news, but the market’s reaction was beyond everyone’s expectations.

As soon as the shutdown ended, Bitcoin briefly surged to around $106,000, and Ethereum soared above $3,600. Many thought this was a signal of a rally starting? But what happened next was like a spectacular fireworks display—seemingly magnificent but fleeting. Not long after, Bitcoin sharply fell below $95,000, and Ethereum’s decline exceeded 10% at one point.

The most heartbreaking part is that this decline wasn’t just a solo dance in the crypto market. Traditional US stocks also suffered, and this is no coincidence. Bitcoin’s correlation with the Nasdaq reached 0.8, reflecting a broader confidence crisis in risk assets rather than a problem isolated to one market.

**Three signals reveal the true pulse of the market**

First signal: The aftereffects of the shutdown are beginning to show

An 80-day federal employee furlough or unpaid work is no minor procedure. Many government projects and services have fallen into paralysis… These wounds won’t heal overnight.