Panic spreads over the US government shutdown, where can funds seek safe havens? Guofu Quantum CEO Liu: Bitcoin's attributes face a critical test

The US federal government will shut down at midnight due to Congress's failure to pass an appropriations bill. The congressional deadlock has shocked the world! The federal government shutdown began at midnight. As panic spreads, safe-haven funds may surge. In an interview with B.news, Liu, Chairman of Guofu Quantum (00290.HK), and Chairman of the Hong Kong Digital Asset Listed Companies Association, discussed the impact of this event on the capital market. He stated that the event is expected to impact both the stock and cryptocurrency markets, and Bitcoin's properties will face a critical test.

First, consider sentiment in the short term and substance in the long term: The initial market reaction will be driven by panic, with both the stock and cryptocurrency markets likely to decline simultaneously. However, subsequent trends will depend on the duration of the shutdown. A short-term shutdown will only cause market ripples, while a prolonged shutdown will trigger real economic concerns.

Second, this event presents a litmus test for Bitcoin: This event is another opportunity to test its safe-haven properties as "digital gold." If Bitcoin demonstrates relative resilience or even rises against the trend amid global market panic, it will significantly strengthen its position within this narrative. On the contrary, if its decline is far greater than that of gold, it means that its "risk asset" attribute still dominates.

Finally, investors should remain cautious at this time and avoid blindly buying the dip. They should focus on the progress of negotiations in Washington and changes in the market Volatility Index (VIX). Until the situation becomes clearer, cash and high-quality government bonds remain the preferred safe havens.

In summary, Mr. Liu believes that this incident will provide a critical "stress test" for Bitcoin's "digital gold" properties. In the short term, market panic will prevail, and both the stock and cryptocurrency markets will likely face pressure. However, if the political deadlock persists, Bitcoin, with its unique narrative, may demonstrate resilience, unlike traditional stock markets. He advises investors to remain cautious and closely monitor developments.