Why Bitcoin Price Still Dropping Despite Shutdown Deal: Latest 2025 Update

Bitcoin’s decline has continued this week, leaving many investors asking why Bitcoin price still dropping even after the government shutdown agreement moved forward. The crypto market fell again on Wednesday, with Bitcoin hovering near $103,000. Ethereum, Solana, and XRP also slipped during the same period.

The weakness arrives at a time when the shutdown’s end should boost market confidence. Instead, cryptocurrencies remain under pressure as traders react to interest rate worries and shifting investor behavior. Major outlets including Reuters and AP have reported that digital assets are losing momentum as markets wait for new economic data to return.

What’s Behind the Slide in Bitcoin Price Still Dropping?

Bitcoin fell roughly 1.5% over 24 hours, bringing it more than 20% below its October record high. Ethereum dropped over 3%, Solana slid more than 5%, and XRP dipped more than 2% during the same period. These numbers reflect a broader slowdown across digital assets. Analysts say the biggest catalyst is investor caution around interest rate policy.

Concerns grew after new commentary suggested the Federal Reserve may not cut rates in December. When interest rates remain steady, interest-bearing assets such as bonds become more attractive. Cryptocurrencies do not yield returns, making them less appealing during tighter monetary conditions. Reuters reported that liquidity remains cautious until fresh economic reports are released after the shutdown delay.

Another factor is investor rotation. The S&P 500 and Nasdaq 100 both climbed earlier this week after lawmakers advanced a funding bill to end the shutdown. Crypto, however, continued its pullback. Analysts at Nexo told reporters that capital is moving back toward equities. Stocks responded positively to political progress, while Bitcoin and its peers failed to rebound.

Volume across major exchanges also remains lower than normal. Traders appear to be waiting on inflation data, employment numbers, and updated Fed projections. Until those reports arrive, sentiment is fragile. As a result, Bitcoin price still dropping despite broader optimism elsewhere in markets.

How the Market Is Responding and What Comes Next

Short-term reactions show traders prefer safer or more measurable assets. Rising Treasury yields have drawn large inflows as investors position cautiously. Analysts say this reduces immediate demand for highly volatile cryptos. XRP, Solana, and Ethereum prices reflect that shift, with each experiencing sharper losses than Bitcoin during the last 24 hours.

Long-term investors remain in wait-and-see mode. They expect volatility to continue until December’s policy meeting. The shutdown’s end may restore normal market operations, but experts note that does not guarantee a crypto rebound. AP reported that economic uncertainty remains high, and the digital asset market is reacting accordingly.

For now, analysts agree the biggest question remains interest rates. Until the Fed signals a clear shift, traders may continue to see Bitcoin price still dropping. The coming weeks will determine whether digital assets stabilize or face more turbulence.

FYI (keeping you in the loop)-

Q1: Why is Bitcoin price still dropping today?

Bitcoin is falling due to interest rate uncertainty, weak trading volume, and investor rotation back into equities. Concerns about delayed economic data have added pressure.

Q2: Will Bitcoin recover after the shutdown ends?

The shutdown’s end may restore data flow, but analysts say recovery depends more on Federal Reserve policy. Markets need clarity on interest rates before a rebound.

Q3: Are other cryptocurrencies dropping too?

Yes. Ethereum, Solana, and XRP all fell in the last 24 hours. These tokens are reacting to the same macroeconomic pressures affecting Bitcoin.

Q4: How do interest rates affect crypto prices?

Higher or steady interest rates make bonds and savings accounts more attractive. Crypto becomes less appealing because it does not offer fixed returns.

Q5: What could help Bitcoin move higher again?

Stronger economic data, signs of rate cuts, or renewed institutional demand could lift prices. But volatility may remain until December.