Government Shutdown’s Impact on Markets: Liquidity Crunch and Expected Recovery

The recent government shutdown has triggered a liquidity crunch in financial markets, according to expert commentary from Raoul Pal, founder of Real Vision. The Treasury General Account (TGA) is holding substantial funds without outlets for spending, and this lack of activity, combined with reverse repo operations, has hampered market fluidity. This situation has disproportionately affected the cryptocurrency sector, particularly those reliant on liquidity, as traditional asset managers attempt to catch up with benchmarks by investing in tech stocks.