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Will the US government shutdown be prolonged?
Investors are betting on a high probability of lasting more than 10 days.
Prediction market data shows that investors believe the US government shutdown is likely to last longer than 10 days.
On the Kalshi platform, there's a contract specifically betting on a shutdown exceeding 10 days. It's currently trading at 63 cents, meaning the market believes there's a 63% chance of this happening. A bet on a shutdown exceeding 15 days has a 40% probability.
Similar data from another platform, Polymarket, shows: the probability of the shutdown ending between October 10th and 14th is only 34%, while the probability of it lasting beyond October 15th is 40%. This shutdown is the first in nearly seven years in the US, and its root cause is the ongoing bipartisan battle over issues like healthcare.
The last time the US government shut down for 35 days, it directly cost $11 billion. If this shutdown lasts longer than 10 days, will the livelihoods of 800,000 unpaid workers, as well as essential services like flights and drug approvals, be further impacted? Will both parties really wait and see until the costs spiral out of control before they're willing to compromise? Let's wait and see!
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