The crypto market surged over the weekend as optimism grew that the United States government shutdown, now in its 40th day, may finally be coming to an end.
Reports of a bipartisan Senate deal lifted global investor sentiment, sending Bitcoin above $106,000 and Ethereum past $3,600 for the first time in nearly two weeks. The overall crypto market capitalization jumped 4.4% to $3.6 trillion, according to CoinGecko data.
The Senate voted 60–40 to advance a funding bill, which is expected to restore federal operations by midweek.
Jeff May, COO at BTSE, noted that “without key data during the shutdown, the Fed had to wait. Once operations resume, policymakers will have the confidence to adjust rates more actively, potentially easing liquidity pressures across markets.”
Bitcoin rallied more than 4% in 24 hours, reclaiming the $105,000–$106,000 range, while Ethereum gained over 5%.
Other major cryptos, including XRP and BNB, also advanced, reflecting renewed risk appetite. Analysts attribute the rebound to an anticipated recovery in liquidity as government functions and Treasury flows normalize.
Peter Chan of Presto Research said, “Removing the shutdown factor opens the door to a repricing of risk assets in a favorable macro setting, looser monetary policy, fiscal incentives, and reduced uncertainty.”
Yet analysts like “Darkfost” believe these sales represent “a healthy rotation of long-term holders,” noting that institutional demand and ETF inflows have provided sufficient liquidity to absorb large sell orders.
The prospect of a reopened government has also fueled bets on another Federal Reserve rate cut in December, with CME data showing a 63% probability. Lower borrowing costs would likely benefit both equities and digital assets.
Cover image from ChatGPT, BTCUSD chart from Tradingview
