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US Government Shutdown Odds Surge to 77% on Polymarket

By

Triparna Baishnab

Triparna Baishnab

Polymarket raises US shutdown odds to 77% as political tensions rise and funding talks stall in Washington.

US Government Shutdown Odds Surge to 77% on Polymarket

Quick Take

Summary is AI generated, newsroom reviewed.

  • Polymarket shows a 77% shutdown probability.

  • Political pressure continues to rise.

  • Funding talks remain stalled.

  • Markets stay cautious but alert.

It is the first time that the likelihood of a US government shutdown has shot up, according to Polymarket data. The decentralized prediction market currently assigns the probability at 77% and this is a huge jump as compared to the 10 percent a few days back. This startling leap is an indication of increasing political instability in Washington and unsuccessful discussions on federal funding. Lawmakers have a very important deadline, considering that the existing budget provisions run out on January 30, 2026. In the absence of a new contract, a number of the government departments will suffer loss of operational funds.

Polymarket Uncertainty is fueled by Political Deadlock

The increase in political tensions still prevents bipartisan collaboration. The Republican officials now advocate increased allocation to ICE and enforcement of the borders. This deadlock does not allow the passage of a temporary or a long-term funding bill. Consequently, the threat of partial shutdown continues to increase.

Some of the non essential government services would be impacted by a shutdown. Immigration processing, regulatory approvals and federal research programs may come to a halt. The federal workers risk temporary furloughs. There can be slackness in various departments in terms of public services. Whereas basic needs such as defense and healthcare would remain, general efficiency would deteriorate. Such shocks can tend to lower the level of confidence to the stability of the government.

Cryptocurrency Markets Go Cap and Trade

Crypto markets have not been too volatile. Traders are on the alert and are under control. Traditionally, the events of the shutdown have led to temporary falls of Bitcoin by 5 to 10%. This story makes people more interested in decentralized financial systems.

Polymarket is still steadily building a reputation as an on-the-fly sentiment tracker. It is an instrument used by traders in order to hedge political and economic risks. The site brings together group anticipations of thousands of members. These markets are usually quicker in responding compared to traditional news outlets. Their predictions affect trading of crypto and finance markets.

Wider Implication on the Financial Sentiment

The closure would hurt confidence in the markets across the world. Investors like political stability in the weak economic situations. US dollar may come under pressure. Sell-offs of risk assets might be short term. Nevertheless, skepticism tends to stimulate the long-term popularity of such alternative resources as Bitcoin and Ethereum. Such environment makes traders both political news oriented and data oriented.

References

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