{ "id": 60346, "date": "2026-01-26T09:34:30", "date_gmt": "2026-01-26T02:34:30", "guid": { "rendered": "https:\/\/hbbgroup.net\/crypto-shaves-100b-as-geopolitical-turmoil-mounts\/" }, "modified": "2026-01-26T09:34:30", "modified_gmt": "2026-01-26T02:34:30", "slug": "crypto-shaves-100b-as-geopolitical-turmoil-mounts", "status": "publish", "type": "post", "link": "https:\/\/hbbgroup.net\/en_us\/crypto-shaves-100b-as-geopolitical-turmoil-mounts\/", "title": { "rendered": "Crypto shaves $100B as geopolitical turmoil mounts" }, "content": { "rendered": "
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Around $100 billion was wiped from the crypto market late on Sunday, as uncertainty around another potential partial US government shutdown caused traders to sell off.<\/p>\n

Senate Democrats threatened to block a funding package if it included money for the Department of Homeland Security, which oversees Immigration and Customs Enforcement, after federal agents shot and killed a man in Minneapolis on Saturday.<\/p>\n

\u201cDemocrats sought common sense reforms in the Department of Homeland Security spending bill, but because of Republicans\u2019 refusal to stand up to President Trump, the DHS bill is woefully inadequate to rein in the abuses of ICE. I will vote no,\u201d said<\/a> Senate Democrat Leader Chuck Schumer.<\/p>\n

\u201cSenate Democrats will not provide the votes to proceed to the appropriations bill if the DHS funding bill is included,\u201d he added.<\/p>\n

TradingView data<\/a> shows the crypto market cap dropped from $2.97 trillion to $2.87 trillion in six and a half hours by Sunday at 9:30 pm UTC, pushing Bitcoin (BTC<\/a>) down 3.4% over the last 24 hours.<\/p>\n

Altcoins were hit even harder, with Ether (ETH<\/a>) down 5.3% in the last day.<\/p>\n

Over $360 million worth of leveraged crypto positions have also been flushed in the past day, with $324 million worth of long positions liquidated, Gate data<\/a> shows.<\/p>\n

Odds of shutdown by end of January rise<\/h2>\n

Bettors on prediction markets Kalshi and Polymarket have backed<\/a> up to 80% odds of the US government shutting down by Saturday, Jan. 31.<\/p>\n

Odds on Kalshi of a government shutdown by Jan. 31 surged from below 10% on Saturday to 78.6% on Sunday, while Polymarket\u2019s odds showed a similar surge to 80%.<\/p>\n

Odds of a US government shutdown by Saturday, Jan. 31, are at 80% on Polymarket. Source: <\/em>Polymarket<\/em><\/a><\/figcaption><\/figure>\n

Adding to traders\u2019 fear of a downturn was US President Donald Trump threatening to raise tariffs<\/a> on Canada to 100% if the country strikes a deal with China, and the US military deploying warships to the Middle East amid rising tensions with Iran.<\/p>\n

Crypto prices fell during the last shutdown<\/h2>\n

Crypto investors have a fresh memory of how market prices fare during US government shutdowns.<\/p>\n