U.S. Government Shutdown Looms: These 3 Crypto Predictions Could Explode

As the January trading session unfolds, the crypto market rose 1.07% in 24 hours, showing renewed strength. Bitcoin remained near $88,000, while Ethereum stayed above $2,900. XRP traded at $1.87, suggesting further upside. Traders are watching crypto predictions closely as U.S. government shutdown concerns increase political tension across markets.

Crypto Predictions Rise as Market Recovers Before Government Shutdown Deadline

Congress ended its December session without passing a full budget or finalizing a path forward. As the January 31 deadline approaches, a government shutdown is more likely to happen. Although lawmakers have agreed on the overall expenditure limits, they have disagreements on how the funds should be divided.

Republican leaders are accused by the democrats of spending months drafting partisan bills. They claim that they are willing to work with the agreed caps.

Nonetheless, conservative Republicans still insist on flat-funding of the agencies and do not want to spend more than it is possible now. The stalemate raises the probability of a temporary suspension or closure.

Crypto predictions currently revolves around the response of the markets to the increasing risk of federal disruption. Political uncertainty has been known to increase the demand of decentralized assets such as Bitcoin and Ethereum historically. 

Digital assets could also have an advantage in case the stalemate continues; the investors will find an alternative to conventional finance.

The crypto market participants are preparing to face volatility as there are only weeks to go before the deadline. The next move will probably be motivated by Washington, whether it will trigger a selloff or more people will adopt it.

Bitcoin, Ethereum, XRP Price Prediction

Bitcoin price gained 0.9% in the last 24 hours, extending its weekly increase to 1.95%. The rise was recorded as the market sentiment went positive after new institutional interest.

Following seven days of outflows that ran for a total of $1.12 billion, crypto ETFs changed direction and returned to net inflows on December 30. The entire inflows in crypto-linked ETFs were $428 million, and the majority of it was invested in Bitcoin funds.

🚨BITCOIN ETF INFLOWS ARE BACK!

After 7 straight days of OUTFLOWS totaling $1.12 BILLION, ETFs just flipped positive with $355 MILLION in inflows on Dec 30. pic.twitter.com/7cDGhnYsHa

— Coin Bureau (@coinbureau) December 31, 2025

The move is an indication that there is fresh confidence in digital assets, especially Bitcoin, which has remained resolute above critical areas of support.

Once Bitcoin verifies an escape out of the existing triangle, it may shoot past the 90,000 mark. On the other hand, the breakdown of this pattern may signal greater risks of correction.

Ethereum Hits 2.2M Daily Transactions

Ethereum hovered near $3,000 on Wednesday, maintaining the 1.22% gain from the previous session. The ETH price held support above $2,900 and showed signs of building momentum. 

A breakout above the descending trendline could pave the way for further upside beyond the $3,000 mark, reinforcing bullish crypto predictions.

The performance of Ethereum has also been enhanced in terms of the network. The blockchain executed 2.2 million transactions per day this week. The average gas rates have decreased to 0.17, quite low in contrast to 2022 when they were at 200.

This was done following the effective deployment of the Pectra and Fusaka upgrades that increased the efficiency and scalability of the validators.

Ethereum hit a new daily record of 2.2 million transactions this week, with average fees around $0.17. Fees have continued to fall since peaking above $200 in May 2022. The 2025 Pectra and Fusaka upgrades improved validator efficiency and scalability. Meanwhile, Ethereum’s…

— Wu Blockchain (@WuBlockchain) December 31, 2025

XRP also demonstrated a 0.6% growth during the last 24 hours. The commodity was trading close to $1.87, and it is still squeezing below resistance.

Any daily close above $1.90 might be a sign of a bullish breakout, and the level will be reached, triggering a rally to $2.00. But, lack of clearing the barrier can result to renewal of selling pressure.