Crypto: New Crypto Shaves $100b As Geopolitical Turmoil Mounts 2026

Senate Democrats have threatened to block a funding bill if it includes money for the Department of Homeland Security, making traders fearful of another possible US government shutdown.

Around $100 billion was wiped from the crypto market late on Sunday, amid uncertainty around another potential partial US government shutdown caused traders to sell off.

Senate Democrats threatened to block a funding package if it included money for the Department of Homeland Security, which oversees Immigration and Customs Enforcement, after federal agents shot and killed a man in Minneapolis on Saturday.

“Democrats sought common sense reforms in the Department of Homeland Security spending bill, but because of Republicans’ refusal to stand up to President Trump, the DHS bill is woefully inadequate to rein in the abuses of ICE. I will vote no,” said Senate Democrat Leader Chuck Schumer.

“Senate Democrats will not provide the votes to proceed to the appropriations bill if the DHS funding bill is included,” he added.

TradingView data shows the crypto market cap dropped from $2.97 trillion to $2.87 trillion in six and a half hours by Sunday at 9:30 pm UTC, pushing Bitcoin (BTC) down 3.4% over the last 24 hours.

Altcoins were hit even harder, with Ether (ETH) down 5.3% in the last day.

Over $360 million worth of leveraged crypto positions have also been flushed in the past day, with $324 million worth of long positions liquidated, Gate data shows.

Bettors on prediction markets Kalshi and Polymarket have backed up to 80% odds of the US government shutting down by Saturday, Jan. 31.

Odds on Kalshi of a government shutdown by Jan. 31 surged from below 10% on Saturday to 78.6% on Sunday, while Polymarket’s odds showed a similar surge to 80%.

Source: CoinTelegraph