US Government Shutdown Nears End After 40 Days: What It Means for Crypto and Markets
The 40-day US government shutdown is ending, causing crypto markets like Bitcoin and Ethereum to rally on expected liquidity return and regulatory activity resumption.Summary
The US government shutdown, the longest in history at 40 days, is nearing its end after the Senate advanced a bipartisan deal to reopen funding through January. This political resolution immediately boosted crypto markets; Bitcoin jumped above $106,000 and Ethereum surged 7%, driven by the anticipation that hundreds of billions of dollars frozen in the Treasury General Account will soon re-enter circulation, injecting significant liquidity. Historically, past shutdowns have preceded major crypto rallies, with Bitcoin gaining significantly after the 2018-2019 closure. Furthermore, the resumption of SEC operations means over 90 pending crypto ETF applications, including for XRP and Solana, can resume review, potentially leading to massive institutional inflows. While the economic cost was estimated between $7 billion and $14 billion, the combination of restored liquidity, potential Fed rate cuts, and regulatory progress suggests strong upward momentum for risk assets, although the funding extension only lasts until January, posing a future risk.
(Source：Brave New Coin)