The cryptocurrency market is experiencing a notable downturn, with Bitcoin and Ethereum prices declining significantly, alongside substantial liquidation volumes in futures markets. This correction appears to be influenced by broader macroeconomic concerns, specifically the looming threat of a U.S. government shutdown.
On September 25, 2025, Bitcoin’s price fell below the $112,000 mark, trading at approximately $111,600, according to TradingView data. This represents a weekly decline of over 4%. Simultaneously, Ethereum experienced a dip below $4,000, momentarily reaching $3,996 before attempting to find support around the $4,000 level.
The broader crypto market has not been immune to this correction, with other major crypto assets also registering declines. Analysis indicates that altcoins have been disproportionately affected by the downturn, experiencing more pronounced price drops compared to Bitcoin.
This market recalibration has triggered significant liquidation events in the futures market. Over 127,000 traders have seen their positions forcibly closed, resulting in cumulative losses exceeding $400 million in the past 24 hours. The majority of these liquidations have affected long positions, suggesting a market sentiment shift towards bearishness. This is not an isolated incident, as Bitcoin had previously tested the $112,000 threshold earlier in the week.
A primary driver for this market volatility is the potential for a U.S. government shutdown on October 1, 2025, if a continuing resolution is not passed. Such an event would necessitate the approval of at least 60 senators, including seven Democrats assuming full Republican support. This situation highlights the increasing correlation between the cryptocurrency market and macroeconomic factors, as evidenced by a simultaneous decline in traditional stock markets, with the S&P 500 index also registering a 0.3% drop in the preceding 24 hours.
Senior Crypto Correspondent with over 8 years of experience covering Bitcoin, altcoins, and blockchain technology for leading financial publications. Alexander holds a master’s degree in Financial Economics and specializes in in-depth market analysis, regulatory updates, and interviews with top industry figures.