Bitcoin is set to surge to a new price record after the US Senate voted to end the government shutdown on Monday, analysts say.
The move is widely expected to end the longest federal shutdown in American history and injects a dose of optimism into markets that had spent weeks trading cautiously after a painful $20 billion deleveraging event on October 10.
The news is “opening the pathway for a broader rebound,” Farzam Ehsani, CEO of crypto exchange VALR, told DL News.
Bitcoin is headed for $130,000 if it can reclaim $110,000, which is “the beginning of a new upside market cycle,” he added.
Bitcoin’s price currently trades just over $105,000.
To be sure, the US federal government has not reopened yet. But the Senate’s approval clears the way for the US House of Representatives to reconvene in Washington on Wednesday to take up the bill, where it is expected to pass.
Rebound in sight
The development comes as the $3.6 trillion overall crypto market trades sideways, up about 5% from its early November lows.
Bleeding from Bitcoin exchange-traded funds has stopped. On Monday, Bitcoin ETFs notched $1.2 million in sales, according to DefiLlama data.
And crypto isn’t the only risk-on asset class rebounding.
US technology stocks also jumped after a brief sell-off last week. Nvidia climbed 5.8%, Palantir 8.8%, and the so-called Magnificent 7 tech blue chips gained 2.8% in a single session, Ed Yardeni of Yardeni Research noted.
“The AI trade remains the big story,” Yardeni said. “It’s hard to short stocks in a bull market.”
Shutdown nears end
The US Senate passed a bipartisan funding bill late Monday night, 60 to 40, paving the way for the government to reopen after a record 41-day closure, The Hill reported.
President Donald Trump has endorsed and is expected to sign the deal this week, restoring key government agencies and paying hundreds of thousands of furloughed workers.
Adding to the positive tone, Trump reignited hopes for fiscal support by floating the idea of $2,000 rebate checks funded by US tariff revenue.
The plan, said to be aimed at middle- and low-income US citizens, echoes the pandemic-era stimulus payments that helped ignite the last major crypto rally.
With the shutdown ending and sentiment improving, attention now turns to Thursday’s expected Consumer Price Index report, a key test for the rally’s durability.
Investors are paying attention to the CPI report because it impacts the Federal Reserve’s decision making calculus on whether or not to cut interest rates at the big December meeting.
The CME FedWatch tool assesses the probability of a rate cut in December at 63%. Bettors on Polymarket put the odds at 69%.
Crypto market movers
- Bitcoin is down 1% over the past 24 hours, trading at $105,000.
- Ethereum is down 1% over the past 24 hours, trading at $3,550.
What we’re reading
- Uniswap soars as leadership proposes new fee switch, $800m burn — DL News
- What is LlamaAI? How does it unlock DeFi’s black box? — DL News
- Circle Pushes Equal Standards for GENIUS Act Rollout — Unchained
- Why Index Funds Could Trigger the Next Market Crash w/ Bill Fleckenstein — Milk Road
- XRP surges 11% on the back of ETF filings as new funds seen to trigger a $5bn bonanza — DL News
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? lance@dlnews.com.
