Ether (ETH) led the decline among major cryptocurrencies during Thursday's Asian trading session as concerns over a potential U.S. government shutdown intensified. Betting platform Polymarket showed the probability of a shutdown reaching record highs.
Shares for the "U.S. government shutdown in 2025?" contract rose to 77%, indicating traders see a high likelihood of funding lapsing by December 31. The White House is reportedly preparing for possible staff reductions and furloughs if a spending bill isn't passed.
Ether fell over 3%, briefly testing the $4,000 support level, while Bitcoin (BTC) dropped over 1% to below $112,000. Other major cryptocurrencies including XRP, Solana (SOL), and Dogecoin (DOGE) saw declines of 2.6% to 3%.
Market analysts suggest that cautious Fed policy comments and upcoming PCE inflation data are contributing to the risk-averse sentiment. The CoinDesk 20 Index declined 2% to 3,940 points during the session.