- The US Senate has advanced a bipartisan funding bill to end the 40-day government shutdown, sparking a relief rally in crypto markets.
- Bitcoin rose 4.4% to $106,119, while Ethereum surged 7.8% to $3,632 in the past 24 hours.
- Analysts see the resolution as a positive liquidity signal, potentially unlocking delayed ETF approvals and boosting institutional inflows.
Cryptocurrency prices surged on Monday following reports that the US Senate has advanced legislation to end the longest government shutdown in US history.
Bitcoin (BTC) climbed above $106,000 for the first time in nearly a week, gaining 4.4% over the past 24 hours to trade at $106,119. Ethereum (ETH) outperformed with a 7.8% increase to $3,632.
Market-wide rebound amid political resolution
The broader crypto market followed suit, with XRP and Solana each rising about 6%, and the total market capitalization increasing 4.8% to $3.58 trillion. The shutdown, lasting 40 days, had created economic uncertainty and stalled government operations, weighing on risk assets including cryptocurrencies.
Prediction markets reflected growing optimism, with bets on platforms like Polymarket assigning over 90% probability to the shutdown ending before November 15.
Analyst insights and historical context
“The end of the shutdown is being seen as a positive liquidity signal,” analysts at QCP Capital noted in a market update. The resolution could unlock stalled reviews of spot crypto ETFs, potentially attracting billions in institutional capital.
Historically, post-shutdown periods have been bullish for crypto. After the 2018-2019 shutdown, Bitcoin surged 265% in the following five months. However, experts caution that long-term fiscal implications, including potential impacts on the US dollar, could introduce volatility.
Traders are monitoring Bitcoin’s resistance at $110,000, with support near $100,000. The rally aligns with improved risk sentiment across equities and digital assets.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
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