Crypto Bounces Back as Washington Nears Deal to End 40-Day Shutdown

After more than a month of gridlock, the U.S. Senate has moved a step closer to ending the 40-day government shutdown that disrupted federal operations, delayed aid programs, and caused some not-so-good economic sentiment.

In a Sunday procedural vote, lawmakers advanced a House-passed bill to fund the government through January 30, with the inclusion of three full-year appropriations bills.

If approved, the measure still needs a green light from the House and President Trump’s signature, meaning the process could stretch into the week.

However, optimism is rising. “It looks like we’re getting very close to the shutdown ending,” President Trump told reporters before the vote, showing what could be the first real breakthrough in weeks.

The agreement also includes a December vote to extend subsidies under the Affordable Care Act (ACA), a Democratic priority that’s been at the heart of the standoff.

Republicans have agreed to consider the extension once government funding resumes, potentially preserving lower premiums for millions of Americans.

How the shutdown ripples into markets and crypto

While the shutdown has weighed heavily on sectors like travel and public services, its easing appears to have lifted some of the pressure from risk assets, especially in crypto.

Bitcoin (BTC) has reclaimed the $100,000 mark, now trading above $106,000 after a 4.4% rise in the past 24 hours, according to CoinGecko. Ethereum (ETH) followed with a 5.6% increase to around $3,610, though it remains slightly down for the week.

Other major assets are also seeing green. XRP jumped 8.1%, BNB rose 1.7%, and Solana (SOL) climbed 5.1% in the same period, pushing total crypto market capitalization up by 4.4% to about $3.67 trillion.

Analysts say the market’s bounce reflects renewed optimism around macro stability, or at least, relief that Washington’s fiscal paralysis might finally be ending.

Prominent trader Michaël van de Poppe shared on X, “Crucial resistance coming up for Bitcoin. The government shutdown is nearly over, that could be the signal for markets to flip back to bull mode. If BTC breaks $110K, we might be heading for a retest of the all-time high. Expect alts to outperform once that happens.”

Despite the recovery, liquidations have remained significant. Data from Coinglass shows roughly 118,000 traders were liquidated in the past 24 hours, with total positions worth $342.7 million wiped out.

Amidst these, President Trump also happens to be planning a $2,000 payout to all American citizens from tariff profits, a news many in the community see as a positive one for the market based on previous times.

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