Crypto Today: Bitcoin, Ethereum, XRP edge higher as US government shutdown fears intensify

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are edging higher at the time of writing on Monday, as traders navigate mounting macroeconomic uncertainty and political risks amid the looming threat of another United States (US) government shutdown.

The flagship cryptocurrency is inching toward $88,000, seeking to regain momentum after a volatile week marked by sharp intraday swings and risk-off sentiment. Ethereum holds above $2,900 while XRP nears $1.90, signaling growing risk-on sentiment.

BTC, ETH and XRP rebound as markets weigh growing US government uncertainty

The odds of a partial US government shutdown by the end of the week have increased to 77% on the prediction platform Polymarket. The US Senate is expected to vote on a massive $1.2 trillion package to fund government operations; however, challenges are emerging as Democratic senators withdraw support amid pushback against federal immigration agents, CNBC reports.

The federal government will begin a partial shutdown on Friday if the Senate fails to approve the deal. The previous shutdown in the fourth quarter of 2025 lasted 43 days, the longest in history, stalling federal government operations.

Historically, government shutdowns have triggered risk-off sentiment across financial markets, with digital assets often bearing the brunt of volatility as investors flee to safer havens.

Chart of the day: Bitcoin rises as pressure eases slightly

Bitcoin is eyeing a short-term breakout above $90,000, as bulls tighten their grip after last week’s intense volatility. The Relative Strength Index (RSI), which has risen to 40 on the daily chart, suggests that crypto bulls are attempting to hold key support levels. An increase in the RSI beyond the midline could signal a potential transition from bearish to bullish as Bitcoin navigates hurdles toward the psychological $100,000 level.

However, the Moving Average Convergence Divergence (MACD) indicator on the same chart holds below the signal line, confirming the overall bearish bias.

Bitcoin also sits below the 50-day Exponential Moving Average (EMA) at $91,470, the 100-day EMA at $94,933 and the 200-day EMA at 98,628, all of which reinforce the bearish grip. A close below $88,000 could encourage risk-off sentiment, leaving Bitcoin vulnerable to selling pressure toward the November low of $80,600.

Altcoins technical outlook: Ethereum, XRP exhibit short-term strength

Ethereum is also nudging higher, hovering slightly above $2,900 as bulls mull a breakout past $3,000. The smart contract token’s short-term positive outlook is supported by the RSI’s recovery to 39 on the daily chart. A further increase in the RSI toward the midline would suggest that bearish momentum is fading, gradually paving the way for steady gains.

Still, a break above the 50-day EMA at $3,107 would be required to reinforce the bullish grip. Despite modest intraday gains, Ethereum is not out of the woods yet, as the MACD indicator on the same chart remains below the signal line. Histogram bars expanding below the zero line may prompt traders to reduce risk exposure, adding to the selling pressure. A reversal below Monday’s open at $2,817 would increase the risk of the downtrend’s continuation toward the December 1 support at $2,716.

Similarly, XRP is edging up toward a short-term hurdle at $1.90 while its intraday low provides support at $1.83. The RSI backs the positive outlook, rising above 40 on the daily chart and signalling easing bearish momentum. A steady increase above the midline would boost XRP’s recovery odds beyond the pivotal $2.00 level.

Meanwhile, XRP remains below the 50-day EMA at $2.03, the 100-day EMA at $2.16 and the 200-day EMA at $2.29. Besides the moving average cluster capping the upside, it is also sloping downward, emphasising the overall bearish outlook. The MACD indicator on the same chart remains below the signal line, increasing the odds of robust bearish momentum. A correction below Sunday’s low at $1.81 may extend the sell-off down to April’s support at $1.61.