In the backdrop of the U.S government calling it quits after the Democrats and Republicans failed to agree upon a budget, the crypto market has been doing well. Bitcoin recovered, the Altcoin Season Index held its shape despite a fall, and much more happened.
U.S government shuts down, but crypto is on song
Crypto markets kept flourishing despite the U.S government shutdown over a political deadlock. The Republicans and Democrats could not reach an agreement on the spending bill by the end of Wednesday, causing the ruling body to force a shutdown. However, crypto prices were not impacted by the closure. Bitcoin dropped from $114K to $112K, but it recovered in no time, and at the time of writing, is trading at $117.6K
Altcoin Season Index retraces
The Altcoin Season Index (ASI) fell below 75 on its scale, the threshold for altcoin season. The ASI is an indicator that fluctuates between Altcoin Season and Bitcoin Season. Values above 75 denote it is Altcoin season, and values below 25 indicate it is Bitcoin season, while any value between 25 and 27 is considered neutral. Despite the ASI falling in value, it is still within the bounds of the bullish trend.
Stablecoins thrive in third quarter of 2025
Stablecoin on-chain transfers hit a record $15.6 million in the third quarter of 2025, while the supply surged nearly to $45 billion in Q3, showing the largest quarterly expansion in history. In addition, stablecoin transfers under $250 hit an all-time high in September.
Abu Dhabi agricultural regulator bans crypto mining
The Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), the agricultural regulator of Abu Dhabi, an emirate in the United Arab Emirates (UAE), banned the usage of farmland for crypto mining.
Individuals indulging in such activities will face heavy fines of up to 100,000 AED ($27,229). On top of that, the ADAFSA will suspend municipal services, confiscate mining hardware, and disconnect the farmland from the electrical grid, according to Tuesday’s announcement.
Token unlocks drastically drop from September
More than $4 billion worth of tokens will be unlocked in October, which is considered to be a crypto-friendly month. The amount of tokens unlocked in October is less than half of what was unlocked during September, with November and December further reducing.
Liquidations indicate an important market signal
On September 30, more than $194 million in short positions were liquidated while $241 million worth of long positions were scrapped out of the market. However, the long liquidation amount dropped to $104 million today, while the short liquidation hit approximately $340 million, showing that the selling pressure is reducing.
SEC to allow stocks to trade on crypto exchange
The US Securities and Exchange Commission (SEC) is considering allowing blockchain-registered stocks to trade on crypto exchanges.
Although in its early stages, if the proposal is passed, it would allow investors to buy and sell stock tokens — digital representations of shares in publicly traded companies — on approved crypto platforms.
Crypto ETF netflow drops by 50%
Crypto ETF netflow remained positive for the past two days. On September 29, the crypto ETF netflow reached a total of approximately $1 billion, with Bitcoin and Ethereum having almost equal inflows. However, yesterday, the total crypto ETF netflow reduced by half to nearly 560 million.
As the U.S government is shut, there will be a delay in economic data. In addition, the passage of the CLARITY, which clearly delineates which agency (SEC or CFTC) regulates what kinds of digital assets, will be delayed.
