Bitcoin and Ethereum surged late Sunday as U.S. senators advanced a bipartisan deal to end the 40-day government shutdown a breakthrough that quickly rippled through global markets and revived risk appetite.
After weeks of political gridlock and market anxiety, optimism has finally crept back into the crypto space.
Bitcoin rose 4.4% in the past 24 hours, climbing past $106,000, while Ether jumped nearly 8% to $3,632. The rally extended across the board, with XRP, Solana, and Binance Coin also posting strong gains.
Shutdown
The vote passing 60 to 40 in the Senate marks a critical step toward reopening the U.S. government after a month-long standoff that had strained liquidity and darkened the macroeconomic outlook.
The bill now moves to the House of Representatives before landing on President Donald Trump’s desk for final approval.
Market analysts were quick to interpret the move as a turning point for sentiment.
Peter Chung, head of research at Presto Research, said the shutdown had quietly been tightening funding conditions.
“The prolonged shutdown had the effect of draining liquidity in the overnight funding market,” he explained.
“The removal of this overhang paves the way for risk assets to price in a more favorable macro environment, looser monetary policy, resolution of trade tensions, and likely fiscal stimulus ahead of next year’s midterm election.”
Vincent Liu, chief investment officer at Kronos Research, echoed that sentiment, pointing to a mix of policy optimism and improving liquidity as key drivers.
“Crypto is climbing as Trump’s proposed tariff dividend boosts risk appetite,” Liu said.
“The improving macro backdrop, driven by optimism around a potential end to the shutdown, is reinforcing the recovery momentum.”
Over the weekend, Trump announced that roughly 85% of American adults would distribute $2,000 “dividend” payments to Americans funded by tariff revenues, excluding high-income earners.
The plan aims to offset cost-of-living pressures and, according to Liu, could indirectly stimulate demand for speculative assets like Bitcoin if consumer liquidity improves.
Relief?
The announcement stirred fresh speculation about new fiscal measures and potential consumer spending boosts, both traditionally positive for risk assets. But the significance of a government reopening goes beyond near-term price action.
For Jeff Mei, chief operating officer at BTSE, the return of federal operations also restores a key ingredient for monetary policy:
“More critical is that economic datasets will become available again, giving the Fed more indicators to work with,” Mei said.
“With no data during the shutdown, the Fed was likely to just wait and sit tight. Now we may see more actions taken to stimulate the economy.”
That renewed clarity could have far-reaching effects on both traditional and digital markets.
According to Nick Ruck, director at LVRG Research, improving liquidity signals were already hinting at a potential crypto rebound.
“The recent uptick appears primarily triggered by improved U.S. financial liquidity, including a stalling dollar index momentum, which historically favors risk assets like cryptocurrencies,” he noted.
Still, Ruck cautioned that while the shutdown resolution has helped sentiment, institutional inflows remain the main driver of current price action.
As traders absorb the latest political and economic developments, attention now shifts to upcoming inflation data and possible Fed commentary.
Liu of Kronos said ETF inflows and Bitcoin’s market dominance will be key indicators of whether this rebound broadens to altcoins or remains centered on the majors.
For now, the end of Washington’s stalemate has delivered a rare moment of relief, one that crypto markets were quick to seize.
Whether the momentum holds will depend on how smoothly the government reopens and whether optimism translates into sustained buying rather than another short-lived bounce.
Roman Zaika
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
