The Shutdown is over!? The news broke last night. The U.S. Senate has nearly reached an agreement to end the Shutdown, a government paralysis that lasted 40 days. This announcement had an immediate effect on the cryptocurrency market, pushing Bitcoin above $106,000 for the first time in nearly a week. Other major cryptocurrencies like Ethereum (ETH), XRP, and Solana (SOL) also recorded gains. Here’s the update.
Key points of this article:
The U.S. Senate has nearly ended the Shutdown after 40 days, a decision that triggered an immediate reaction in the cryptocurrency market.
Bitcoin has crossed the threshold of $106,000 for the first time in a week, while Ethereum and other cryptocurrencies have recorded significant gains.
Bitcoin and Ethereum rebound
According to data from CoinGecko, Bitcoin has increased by over 4%, surpassing $106,000. Ether, the second-largest cryptocurrency by market capitalization, also saw an increase of over 7%, trading above $3,600. XRP and Solana followed the trend, with increases of about 6% each.
The government paralysis, which lasted more than a month, weighed heavily on the market. Bitcoin had fallen below $100,000 multiple times, marking a decline of over 15% compared to its record of $126,000 reached in early October. Ethereum had also lost ground, reflecting investors' avoidance of risky assets.
A Senate agreement ends the paralysis
The agreement between Democrats and Republicans in the Senate to reopen the government was reported by Politico, The Wall Street Journal, and The New York Times. The resolution came after moderate Democrats agreed to vote in favor of procedural motions to fund the government.
Democrats had insisted on extending health subsidies to make insurance cheaper, but the duration of the paralysis ultimately took precedence over these concerns.
Furthermore, in a message posted on his Truth Social network, the President of the USA promised that "a dividend of $2,000 per person (excluding high-income taxpayers) will be paid to everyone."
Donald Trump on Truth Social - Source
The end of the Shutdown marks a turning point for financial markets, especially for cryptocurrencies that immediately reacted positively to the announcement. While Bitcoin and Ethereum show signs of recovery, it remains to be seen how the market will evolve in the coming weeks, now that political uncertainty in the United States has been partially lifted.
