Political Crisis in America and its Ripple Effects on Crypto: 3 Events & 3 Defensive Strategies

As the debate in the U.S. Congress stretches for 36 days and dominates financial media, the crypto market is experiencing a period of “silent volatility”. This stagnation is not an unexpected shock like a “black swan”, but rather a “gray rhino” — an event that everyone knows could happen but few are fully prepared for. Based on current market signals, there are three groups of data and three strategies that crypto investors should pay special attention to. I. Three core impacts of the political crisis in America on the crypto market

1. The data gap in the economy creates expectation distortions. The disruption of multiple agencies such as the Ministry of Labor, the Ministry of Commerce… has led to important data such as: Non-farm payrolls (NFP)CPI, PPI Trade and production data …are interrupted. When there is no longer a “data compass,” the market is forced to trade based on vague expectations, causing the volatility in crypto — which is sensitive to emotions — to rise sharply compared to stocks or commodities. This explains why many altcoin charts show unusual “liquidity sweeps.”
2. The US dollar weakens and risk-averse capital flows change direction. The DXY index fell below 93 - the lowest level in half a year. Under normal conditions, this is when safe-haven capital tends to seek out Bitcoin. However, on-chain data and recorded capital flows: There is no large capital flowing strongly into BTC like in 2020. Instead, the capital prioritizes crypto assets linked to real-world assets (, especially those pegged to gold or commodities. This is a signal that the market's defensive strategy is changing: “Do not seek growth assets, but seek value-anchored assets.”
3. Economic downturn forecasts lead to strong polarization among projects According to estimates by Goldman Sachs, each week the U.S. government is closed causes a loss of about 15 billion USD, equivalent to a reduction of 0.3% in GDP each month. This creates three consequences: Projects without real products → easy to be sold off Speculative tokens → drop more than the overall market Projects with real applications, revenue, and a stable community → decrease less or stabilize sideways This is also the time for the market to “filter” out projects that rely solely on marketing rather than intrinsic value. II. Three defense strategies for three types of investors
4. Conservative group: Prioritize neo crypto assets according to commodities This asset has two layers of protection: based on the value of physical assets )such as gold(which also has high liquidity of blockchain From a technical perspective, the gold price still has a widening range of 2,150 – 2,300 USD/oz. The strategy “3322” can be applied: 30% buy on the platform 30% buy when the market adjusts 20% buy when confirming a breakout 20% keep as liquid capital to handle unexpected situations
5. Neutral group: Focus on projects with utility value – cyclical resistance Principle: Avoid coins “that only have a whitepaper”. Avoid projects without products. Avoid tokens that are Ponzi schemes or rely on hype. Priority: DeFi serves real needs: international money transfer, liquidity management, supply chain financing. Projects with real users, real revenue. Transparent team, regular updates, fully audited. Long-term capital ) institutional money ( always chooses this group during strong volatility periods.
6. Venture group: Control risks related to USD and policies Although the USD is weakening, tokens or activities related to the USD still face risks: Change of laws Control of cash flow Exchange rate fluctuations Stricter KYC/AML requirements Recommendation: The weight should not exceed 15% of the total portfolio. Set a stop-loss of 10%-15%. Absolutely do not open large positions when market liquidity is thin. III. Important warning: Absolutely avoid leverage The market is in a “defensive” phase, not suitable for: Futures Margin Position x10 – x20 Bottom fishing with leverage The increase in the number of liquidated accounts in recent weeks is evidence of this. In a highly uncertain environment, preserving capital is more important than quickly making profits. Conclusion The temporary halt by the American government is just a pressure test for the market, not a factor that will change the long-term trend of the crypto industry. However, it is precisely during this volatile period that investors have the opportunity: Observe the capital flow Clearly see the differentiation of the projects Build a clear risk management strategy Crypto is still developing in a long-term cycle, but to survive and benefit from that cycle, prioritizing safety and trading discipline is the most important thing at this moment.