Brothers, attention please! Although the U.S. government shutdown has temporarily come to an end, the market is not convinced—both stocks and cryptocurrencies have plummeted. What exactly is happening behind the scenes?

First, the conclusion: this resolution is only a temporary fix.

According to the current agreement, the funding will last until around January 30. The two parties still cannot agree on core issues like healthcare subsidies, so another shutdown wave is likely in January next year. This policy-level uncertainty directly causes large funds to hold back from entering the market, instead opting to sell off risk assets.

Why is the government reopening now? Simply put, they had no choice.

The aviation system has been shut down due to the shutdown, and staff have walked off the job. With Christmas holidays approaching—America’s most important holiday—any airport paralysis or flight cancellations could cause public outrage that might overwhelm the White House. So, both parties had to compromise temporarily.

But the problem is, this shutdown has already lasted over 40 days.

The entire supply chain has been affected, and GDP growth in Q4 will definitely be impacted. Soldiers need loans to serve, not to mention those living on welfare—nearly one-eighth of the U.S. population are refugees or rely on social assistance, and now those funds have been cut off. How can market confidence not be shaken?

There’s also a bigger hidden risk: the valuation bubble in the AI sector.

AI stocks led by Nvidia have been overhyped, and today, SoftBank’s Masayoshi Son directly liquidated his Nvidia holdings. The spiral of mutual support among U.S. tech stocks now shows signs of collapsing.

Mainstream cryptocurrencies like BTC, ETH, and UNI are also suffering. It seems that in the near future, the market will continue to digest these uncertainties. Hopefully, some big player will step up and give the market a boost!