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Trump Government Shutdown: Effects on Stock Market and Crypto Market



Donald Trump, the president of the united states ended the government shutdown on 25th January 2019. Let's discuss the effects of Trump Government Shutdown.

Donald Trump, the president of the united states ended the government shutdown on 25th January 2019. This shutdown began on 22nd December 2018 and lasted for 35 days. Almost most of the government works were on hold during this shutdown. Now, one must argue that apart from the political impact of this Trump Government Shutdown, what could be its financial impacts. Now, when we are pointing out financial impacts, we are including two markets i.e. the stock market as well as the crypto market.

In this article, we will discuss the effects of Trump Government Shutdown on the stock market and crypto market. We will first introduce the Trump Government Shutdown and finally will point out its effect on the stock market and crypto market individually.


The Trump Government Shutdown:

During the campaign of the presidential election in 2016, Trump had promised to build a border wall between US and Mexico. The expected cost for this action was around $5.7 billion. Trump thought to regain this cost from Mexico. But, this negotiation was refused by the President of Mexico. Eventually, Trump passed an order to build the wall using the existing funding of the federal.

However, a appropriations bill was passed by the Senate in December 2018 and it was not having the fund for the above border wall. Trump refused to sign on this bill as he was focused to include the fund for border wall in this bill. Trump met the top leaders of the Senate on 11 Dec 2018 asking them to support a bill for this border wall having a cost of around $5.7 billion. However, the members refused.

After this declination, Trump announced to start the Government Shutdown in the sake of border security on 22 December 2018. This shutdown expired the funding of various sectors like tax collection, law and regulations etc. Around 0.8 million employees were not paid during this duration. According to a survey, this shutdown cost the US economy around $3.6 billion.

This was a short introduction to the Trump Government Shutdown. Nextly we will see the effects of this shutdown on the stock market.


Effect on the stock market:

Well, if seen at a broad level, shutdowns have never affected the stock market and this shutdown was also not an exception. There wasn’t any major impact of the shutdown on the stock market. The global stock market has risen as well as fallen during the shutdown. During the shutdown, the market fell but for a very short period, around 10-15 days and having no major impact at a global level. During this Trump Government Shutdown, the MSCI World and Asia index have risen 8.1 and 4.2% respectively. The S&P 500 has risen to around 9.3%. So, there is a mix impact on the stock market during the shutdown.

Now let us focus on effects on the stock market after this shutdown. The shutdown has always lead the stock market to rise tremendously after a time gap of 3 months to 1 year after the shutdown. So, it is expected that the stock market will without any doubt, rise significantly after around 3 months of this shutdown.

Now, after the effect on the stock market, let us have a glance at the effect of the Trump Government Shutdown on the crypto market.


Effect on crypto market:

The shutdown may impact the crypto market in both directions as well as indirect way. If we consider the direct impact of the shutdown on the crypto market, then the delay of Bakkt comes first into our mind.

Bakkt was supposed to be launched by the ICE on 24th January 2019. However, ICE was not aware of this shutdown while announcing about the launch of Bakkt. Now, after the shutdown was announced on 22 December 2018, it delayed the launch of Bakkt. It still requires to have some important approvals from the trading commission of the country and as all such commission were off during the shutdown, the Bakkt failed to get these approvals on time and hence was not launched on 24 January 2019. Hence, the shutdown delayed the launch of Bakkt.


Now, let us consider the indirect impact of the shutdown on the crypto market. The price of cryptocurrencies didn’t have some much fluctuation during the shutdown. For example, on 22 December 2018, when the shutdown was announced, BTC was at $ 3882 while on 24 Dec, it was around $ 4311. While on 25 December, it fell to $3756. So, we find that the crypto market faced a mix impact of this shutdown. Someday it rose and someday it fell. So, there was a fluctuation of the impact. Overall, the shutdown doesn’t impact indirectly on the price of cryptocurrencies.


Alert: CME Bitcoin Futures Experiencing Record Breaking Volumes



These days saw the highest and rapid increase ever for Bitcoin futures on the Chicago Mercantile Exchange as the amount exceeded 18,000. Institutional investors are paying attention to this as the bitcoin future contracts get snapped up at an ever-increasing rate.


Record of BTC Contract Size on CME:

As per the stats of CME they were 18,338 on Wednesday, which is the highest figure ever recorded till now. This is equivalent to 91,690 Bitcoins or roughly $365 million at today’s prices.


Upcoming contracts enable explorers to bet on the prices rather than to purchase the physical assets. So these figures might be a little misleading.


When the new product which offers the physically settled contracts hit the market, they will be paying out in BTC which will drive tremendous momentum for crypto markets. Over the past year or so the expectation of a crypto Exchange Traded Fund (ETF) being launched has been telecasted and dominated the news. The year 2018, has been the year of regulation and cooling off which was only to be expected after the previous year of rampant FOMO and parabolic market action.


This year 2019, is expected to be different as many industry experts predict the launch of at least one institutional investment vehicle.


As per the Block European exchange giant, Eurex is preparing to launch crypto and bitcoin futures so the list of institutional offerings is increasing rapidly. The cognate exchange is operated by Germany’s Deutsche Börse, which will be offering Bitcoin, Ethereum and XRP imminently according to the report.


Exchange traded funds are the future:

In addition to these future products, there is already one type of Exchange Traded Funds that are actually traded through an ETN (exchange-traded note) which allows investors to get direct exposure to Bitcoin prices. The Grayscale Bitcoin Trust (GBTC) crosses the technicalities of buying and storing Bitcoin but still allows investors to get into the action by buying shares that trade at around a thousandth of the price of BTC.


GBTC has been highly popular with over $800 million which is already invested in the Bitcoin fund.


Furthermore, Bitcoin is the most popular. The fund eliminates the volatility of buying and owning Bitcoin directly which is something that institutions want.

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Elon Musk: Cryptocurrency is the future, Paper Currency going to end.



CEO of Tesla, Elon Musk, stated that the Day is not far when the paper currency will fade away and shall be replaced by the Bitcoin.

Enthusiastic towards cryptocurrency also the CEO of Tesla, Elon Musk, stated that the Day is not far when the paper currency will fade away and shall be replaced by the Bitcoin. Which clearly means Musk is in favor of the decentralized currency ( also known as cryptocurrency).


In one of the episodes of ‘On The Road To Full Autonomy With Elon Musk, which is hosted by Tasha Keeney, the CEO spoke and discussed the developments that Tesla shall undergo and also spoke about the cryptocurrency with regard the future of technology and finance.


When Elon Musk was asked regarding Jack Dorsey’s prediction, which was that the Internet shall be witnessing Bitcoin as its native currency soon, Elon Musk answered it and found it interesting.


He further said that the idea and also the structure of the Bitcoin is great and it seems like there is some advantage to Ethereum. Elon Musk is not sure whether it will be good for Tesla resources to get into cryptocurrency.


Elon Musk also said that Bitcoin and Ethereum scammers were so rampant on Twitter, he decided to join in and He said at one point that he wants to buy some Bitcoin. Then his account got suspended cause obviously there was some automatic rule, he then ended the conversation by saying that he was just joking.


A campaign was started by Twitter which deleted several bogus accounts for “coordinated manipulation,” and promotion of cryptocurrency scams, Elon Musk appreciated the website’s efforts.


Elon Musk added that the disadvantage of cryptocurrency is that the nature of production is energy intensive as regards to the mining process.


Keeney referenced to the terrible financial condition in Africa, where the restrictions on the currency stop the citizens from converting their currencies and forcing them to go through the US dollar. To which Musk replied that cryptocurrency is a far better way to transfer money or value rather than pieces of paper. Paper money is going away.


Even after Elon Musk’s positive statement on cryptocurrencies, his recognition for the structure and concept of Bitcoin and Ethereum and his confirmation that paper money will be replaced by the decentralized currency, the Tesla CEO made it clear that his company will not be selling Bitcoins.

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Tim Draper: Bitcoin Mass Adoption till 2021



Tim Draper said in an interview with the FOX Business on 18th Day of February 2019 that the world will soon start buying coffee by using Bitcoin.

Bitcoin is considered as digital gold or e-gold which has achieved dominance in the field of cryptocurrency. Tim Draper, who is the inventor of the Billionaire Bitcoin, predicted the rapid increase in the growth of the Bitcoin or cryptocurrency in the world and said in an interview with the FOX Business on 18th Day of February 2019 that the world will soon start buying coffee by using Bitcoin. According to his prediction, the world is just 2 years away from when everybody shall start to use Bitcoin.


By 2023, Baristas would be laughing at people who shall make the payment of their purchase by using the currency other than the Bitcoin, Tim Draper added.


Even after having a large number of Bitcoins, Tim Draper has no plan to trade or sell any of his Bitcoin.

Tim Draper previously claimed and predicted that by 2022, the net value of Bitcoin will reach to $250,000 per coin. The prediction is also said to be the highest prediction coming from the industry of cryptocurrency. But Draper is still not clear on how this rapid growth will take place but he is enough confidence that there will be massive growth in cryptocurrency.


Recently the CEO of Twitter, Jack Dorsey also publicized Bitcoin.

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