Bitcoin and Ethereum, along with other top cryptocurrencies, saw their values shoot up on Sunday after the U.S. Senate approved a crucial spending bill that could put an end to the 40-day government shutdown. The news revived investors’ appetite for risk across global markets, which in turn drove up the price of crypto assets.
Within a day, Bitcoin’s value went up by 4.4% to $106,119, while Ethereum’s price increased by 7.8% to $3,632, as per the data provided by The Chainbull. The rest of the leading tokens also made substantial gains; XRP increased 8.4%, BNB grew 3.7% and Solana climbed 7.8%. The senators struck a nonpartisan deal to end the shutdown and thus passed the bill 60-40 late Sunday. The law requiring approval from the House and the President is on its way now.
Market analysts stated that the Senate’s move brought out the light at the end of the tunnel after many weeks of deadlock and that this had a positive effect on the market’s liquidity and investor confidence. Peter Chung, head of research at Presto Research, pointed out that the extended shutdown had seriously affected the funding market for overnight operations, thereby causing market volatility to increase.
Chung explained, “The freeing from this burden opens up the door for risk instruments to be priced in accordance with a favorable macro environment – monetary policy becoming less strict, the end of trade tensions and the prospect of fiscal stimulus before the next year’s election.” Vincent Liu, CIO at Kronos Research, also said that the optimism about Trump’s “tariff dividend” plan was the main reason for crypto’s bounce back, and he went on to call it “a leading event that triggered the reentry of the risk mode into the digital asset sphere”.
During the weekend, Trump unveiled the idea of using tariff revenues to hand out $2,000 dividend payments to Americans and partially cover them for the costs of their healthcare, a plan that he tweeted on Truth Social. Besides the dismantling of the impasse on the shutdown bill, this announcement helped to fuel a wave of optimism in the market.
Experts also highlighted improving liquidity signals and expectations for the resumption of economic data releases as other main drivers. Jeff Mei, COO of BTSE, stressed that the reopening of the government gives the Fed access to critical datasets that it relies on for policy decisions.
“The Fed was probably on hold if not ‘data-driven’ with no data at all. So now we may see more actions from them to help the economy,” Mei stated. At the same time, Nick Ruck, director of LVRG Research, cited the dollar index’s loss of upward momentum as the main technical reason for the increase in crypto prices. Investors are now looking for the House vote confirmation, the tariff dividend proposal details, and the next inflation reports to evaluate the firmness of the rally,” he added.
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