Bitcoin crossed $106,000 after reports of a breakthrough US shutdown deal boosted market optimism. Ethereum and major altcoins surged too, signalling renewed investor confidence and a potential crypto rebound.
Bitcoin surged past $106,000 on Monday, marking its sharpest rebound in nearly a week, as optimism grew that the 40-day US government shutdown, the longest in the country’s history, could finally be coming to an end.
Reports indicate that the US Senate has reached a breakthrough agreement to fund the government and reopen key departments, lifting market sentiment globally. The crypto market, which had remained volatile through the political standoff, saw a strong relief rally following the news.
At 9:52 AM IST, Bitcoin was up nearly 4% in the past 24 hours, while Ethereum climbed 6.9% to $3,618. Altcoins also joined the rally, with XRP, BNB, Solana, Dogecoin, and Cardano gaining over 8%. The global cryptocurrency market capitalisation rose 4.8% to $3.58 trillion, according to CoinMarketCap data.
Shutdown Overhang and Market Impact
The prolonged government shutdown had spooked investors, with concerns mounting over delayed economic data, frozen federal services, and weaker liquidity across markets. Bitcoin, which slipped below $100,000 several times during the impasse, struggled to regain momentum as investors shied away from riskier assets.
With signs of a resolution emerging, traders are betting on a swift revival of risk appetite. “The end of the shutdown is being seen as a positive liquidity signal,” analysts said, noting that institutional flows could return to crypto markets once federal operations resume fully.
ETF Outflows and Market Turbulence
The political gridlock had taken a visible toll on crypto-linked investments. Over the past eight trading sessions, Bitcoin exchange-traded funds (ETFs) saw outflows exceeding $2 billion, while Ethereum-based funds lost nearly $580 million, the report highlighted. The resumption of normal government activity could help stabilise sentiment and slow the outflow trend, analysts noted.
Meanwhile, crypto-related equities also took a hit during the shutdown, with Coinbase shares plunging over 9% last week and MicroStrategy down by more than 8%.
What’s Next for Crypto?
While Monday’s rally reflects renewed optimism, experts remain cautious about Bitcoin’s short-term trajectory. The token remains more than 15% below its record high of $126,000 set in early October.
Market participants are now watching whether Bitcoin can sustain above the $106,000 level and push toward its next resistance at $110,000. A decisive move beyond that zone could indicate renewed bullish momentum heading into the final weeks of 2025.
As the US government edges closer to reopening, investors are once again reminded of crypto’s sensitivity to macro and policy shifts — and the market’s uncanny ability to spring back just when it seems cornered.
