The Washington deal gives new life to global markets, and cryptocurrency traders are cautiously optimistic after weeks of turmoil. Relief is sweeping digital assets, stocks and futures amid the recent move to… End the US government shutdown.
Senate moves to end shutdown
US Senate A Funding scale That would keep the government running until January 30, 2026, while bringing back some federal employees affected by the shutdown.
After a 40-day partial government shutdown that caused problems for food aid, air travel, and public services, US senators and the White House have finally reached an agreement to reopen the government, which will likely end one of the longest shutdowns in recent years.
The measure prohibits federal agencies from terminating employees’ employment contracts through January 30, a move welcomed by federal labor unions and their allies. It would disrupt US President Donald Trump’s campaign to reduce the federal workforce.
The debate in Congress came as Trump again called on Sunday for replacing subsidies for health insurance markets under the Affordable Care Act with direct payments to individuals. This support, which has helped boost ACA enrollment to 24 million since 2021, is a major reason behind the closure. Republicans say they are willing to talk about the issue, but only after government funding is back in place.
Crypto relief
Markets reacted soon after. Bitcoin fell below the $100,000 level for the first time earlier this week but now it is Back above $106,000. Ethereum price rose about 6% while XRP rose about 8%. However, the measure still needs final approval by the House of Representatives and the signature of the President before it can take effect.
Volatile month for Bitcoin
According to CoinGecko data, Bitcoin first rose to a new all-time high of $126,080 six days after the government shutdown on October 6. But this rise did not last long. The world’s largest cryptocurrency has since fallen more than 17% to trade at about $105,000 as of Monday.
The sharpest slide occurred on October 10, when prices fell by 10% following the announcement that the United States would impose 100% tariffs on China; This is a step that raised investors’ concerns and sparked heavy selling in traditional and digital markets.
The US Capitol. Image: Kylie Cooper/Reuters
Short-term leverage of risky assets
Reports She revealed that the action taken by the Senate brought a wave of optimism to markets hungry for clarity. Cryptocurrency futures trading volumes rose and funding rates turned positive as traders bet on a short-term rebound.
But analysts warn that such gatherings often dissipate quickly. Many described the market reaction as “relief buying” rather than any shift in long-term fundamentals. Bringing back economic data releases — including labor reports and federal spending numbers — could help recalibrate expectations for the Federal Reserve’s interest rate decisions, which remain a key driver for cryptocurrencies.
As of today, the market cap of cryptocurrencies stood at $3.52 trillion. Chart: TradingView
Market watchers are now focused on two things: passage of the final lockdown bill and whether upcoming US economic data will confirm signs of slowing inflation. If both events coincide, risk assets, including Bitcoin, may enjoy a more stable recovery.
Talk of the deal has provided a temporary respite after weeks of uncertainty. However, recent market volatility shows how fragile confidence is in the face of politics, tariffs and global tensions.
Featured image from Radu Florin on UnsplashChart from TradingView
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