Legal Disclaimer BlockBeats Note: On October 1, according to Fox News, due to the US Senate's failure to pass a federal funding bill, the White House has formally announced an upcoming government shutdown.

With the possibility of a government shutdown increasing, Bitcoin traders who rely on upcoming US employment data to gauge whether the Federal Reserve will cut interest rates again may need to wait for some time.

Analysts say the reaction of Bitcoin to such an event is still uncertain, which could exacerbate short-term volatility. The impact of past shutdowns on the price has varied.

Bitunix analysts stated: "Rate cut expectations are beneficial to risk assets, but bubble concerns and political risks have intensified short-term volatility. For cryptocurrencies, this has brought both liquidity support and increased downside uncertainty." "In the medium term, a confirmed rate cut will improve liquidity and support risk assets. However, in the short term, bubble concerns and government shutdown risks have increased vulnerability, making significant 'downward rebound' volatility more likely."

Unless Congress can pass a comprehensive funding bill or continue resolution by midnight on Tuesday, federal funding will run out, and some government functions will shut down as "non-essential." The federal government's fiscal year ends on September 30th.

John Reid, Head of Macro and Thematic Research at Deutsche Bank, wrote in a report: "The key events of this week may not actually happen because if Congress cannot reach a short-term funding resolution before midnight tomorrow, Friday's employment report could be the first high-profile casualty of a potential government shutdown event. In fact, in October 2013, the government shutdown meant we didn't receive the September jobs report until the 22nd of that month."

As of the time of writing, Bitcoin had risen to over $114,000, up 3.8% in the past day. According to CoinGecko data, its price is still 0.7% lower than two weeks ago. Economic statistics and data processing are not considered essential functions, meaning the US Bureau of Labor Statistics will need to delay the upcoming employment report until after government funding is restored. This does not mean the data will not eventually be released, but the delay may exacerbate market volatility. Investors are aware that Fed monetary policy decisions largely hinge on employment and inflation data.

Nansen Research analyst Nicolai Sondergaard stated that a government shutdown could exacerbate short-term volatility in the cryptocurrency market.

However, he added, "But I am indeed curious whether if the broad investor perception is that the 'shutdown' will be resolved quickly, whether the situation will be more than that. Also, if a shutdown does occur, I wouldn't be surprised if its potential impact would reverberate across broader financial markets before the actual shutdown takes place."