Around $100 billion was wiped from the crypto market late Sunday as fears of another US government shutdown intensified.
Senate Democrats threatened to block a funding bill if it included money for the Department of Homeland Security.
“Democrats sought common sense reforms in the Department of Homeland Security spending bill, but because of Republicans’ refusal to stand up to President Trump, the DHS bill is woefully inadequate to rein in the abuses of ICE. I will vote no,”
Chuck Schumer said.
“Senate Democrats will not provide the votes to proceed to the appropriations bill if the DHS funding bill is included,”
Chuck Schumer added.
Trading data showed total crypto market capitalisation falling from $2.97 trillion to $2.87 trillion within hours.
Bitcoin dropped 3.4% over 24 hours as risk appetite weakened.
Ether fell more sharply, sliding 5.3% during the same period.
More than $360 million in leveraged crypto positions were liquidated, with long positions accounting for the majority.
Prediction markets sharply raised the odds of a US government shutdown by January 31.
Kalshi and Polymarket both showed shutdown probabilities nearing 80% by Sunday.
Additional pressure came from renewed geopolitical tensions and trade threats involving Canada and the Middle East.
The Crypto Fear and Greed Index fell to 20, remaining in “extreme fear” territory for a sixth straight day.
At the time of reporting, Bitcoin price was $87,789.67.