Bitcoin (BTC), Ethereum (ETH), and other major cryptocurrencies surged sharply on Sunday night as optimism returned to global markets following the U.S. Senate’s move toward ending the 40-day government shutdown. The development lifted investor confidence and sparked a broad rally across digital assets that had been struggling through a week of losses.
Bitcoin, the world’s largest cryptocurrency, climbed 4.3% in the past 24 hours to trade around $106,175, with its market capitalization reaching $2.12 trillion. Ethereum, the second-largest crypto by market value, rose 6.9% to $3,620, while XRP gained nearly 9% to $2.46.
Solana (SOL) jumped 6.8% to $168, and BNB added about 3.7%. Overall, the global crypto market value rose 4.33% over the last 24 hours, recovering from a week-long slump of about 4%.
Trading activity also picked up notably. BTC’s 24-hour trading volume increased 38% to $67.7 billion, and ETH’s volume soared 55% to $33.7 billion. The rebound came after several days of sluggish trading caused by uncertainty surrounding the U.S. fiscal situation and weakening liquidity in global markets.
Why Crypto Prices Are Rising
The biggest reason for Sunday’s rally was the progress made by the U.S. Senate on a funding bill meant to reopen the government after 40 days of being partially shut down. The shutdown had caused serious problems; many federal agencies couldn’t operate properly, food assistance programs were delayed, and airports were struggling with staff shortages.
As news spread that senators were finally moving closer to ending the deadlock, investors felt relieved and took it as a sign that the political tension in Washington might soon calm down.
Commenting on the development, economist Peter Schiff noted that the news of the government reopening sent stock futures, gold, silver, and Bitcoin rallying. He warned, however, that the deal signaled “a return to business as usual” in Washington, meaning rising deficits and inflation, and suggested that investors would likely keep turning to assets like Bitcoin and precious metals as hedges against the depreciating U.S. dollar.
Over the weekend, President Donald Trump proposed using revenue from tariffs to distribute $2,000 payments to American citizens and help cover parts of their healthcare costs. His post on Truth Social further strengthened hopes that the administration would push for fiscal measures to stimulate the economy once the government reopens.
Senate Advances Bill to End Shutdown
The U.S. Senate on Sunday voted 60-40 to advance a measure aimed at reopening the federal government, which has been shut down for 40 days — the longest closure in recent history. The procedural vote marks a significant breakthrough after weeks of political deadlock between Republicans and Democrats.
The bill being advanced is a modified version of a House-passed continuing resolution, which will now be amended to fund the government through January 30 and also include three full-year appropriations bills. If passed by both chambers, it will be sent to President Trump for his signature, officially ending the shutdown.
The compromise agreement was brokered by centrist Democrats, including Senators Jeanne Shaheen and Maggie Hassan of New Hampshire and Senator Angus King of Maine, who worked closely with Republican leadership and the White House.
Under the deal, Republicans agreed to hold a separate vote in December on extending subsidies under the Affordable Care Act (ACA) — a key Democratic demand. These subsidies help low-income Americans pay for private health insurance and were due to expire at the end of this year.
Senate Majority Leader John Thune praised the progress, saying, “We had a good vote tonight. We’ll hopefully get an opportunity to set up the next votes. And, of course, that’s going to take some cooperation and consent.” He added that he hoped the Senate could pass the measure as early as Monday and send it to the House immediately for approval.
What the Funding Bill Includes
The funding measure, once finalized, will keep major government operations running through early next year and provide back pay to all federal employees, including members of the military, Border Patrol agents, and air-traffic controllers who have gone without pay during the shutdown. It will also prohibit federal agencies from firing employees until January 30, effectively pausing the Trump administration’s broader downsizing efforts for now.
The deal further includes appropriations for military construction, veterans’ affairs, the Department of Agriculture, and the legislative branch through September 30, 2026. A stopgap funding mechanism will cover other parts of the federal government until January 30, preventing another immediate lapse in funding.
In total, about 2.2 million federal workers were employed before the shutdown began, with roughly 300,000 expected to retire or resign this year due to budget cuts and downsizing plans. The bill ensures that those workers receive compensation for the missed pay periods once the government reopens.
Political and Economic Implications
The shutdown’s end would not only restore government operations but also reopen access to critical economic data, something analysts say is vital for the Federal Reserve’s policy decisions.
The reopening of the government also eases fears that the fourth quarter of the year could see a contraction in economic growth. White House economic adviser Kevin Hassett warned earlier that the shutdown’s continuation could have pushed U.S. GDP into negative territory if air travel disruptions extended into the Thanksgiving holiday season.
Even though the Senate made progress, not everyone was on the same page. Some senators — Rand Paul, Mike Lee, Rick Scott, and Ron Johnson- held back their votes at first because they wanted changes to the bill, like adding measures for budget reforms and support for hemp farming in their states.
On the other side, Senate Minority Leader Chuck Schumer and a few other Democrats voted against the bill because they were unhappy that it didn’t include an immediate extension of healthcare subsidies for low-income Americans.
However, momentum toward ending the shutdown now appears strong. As Senator Thune said, “It looks like we’re getting very close to the shutdown ending.”
Optimism and Caution
With Washington appearing to move past a major fiscal hurdle, crypto traders are looking ahead to other catalysts. Analysts say the next major focus will be the Federal Reserve’s signals on interest rates, upcoming inflation data, and the potential launch of spot XRP exchange-traded funds (ETFs), which have fueled additional enthusiasm in the altcoin market.
Still, not all traders are convinced the recovery will last. One prominent trader noted that despite the rebound, key levels haven’t yet been reclaimed, saying ETH needs to move back above $3,900 and SOL above $190 to signal renewed strength. Until that happens, he said, BTC looks “more interesting” from a trading perspective.
While the market’s sentiment has turned positive, analysts caution that volatility could persist until the Senate and House formally pass the funding measure and President Trump signs it into law. Still, Sunday’s rally reflects renewed confidence that political clarity and economic stimulus could support another leg higher for risk assets — with cryptocurrencies at the forefront.
As the government nears reopening and fiscal stability returns, Bitcoin and its peers seem to have regained their footing, signaling that the long-awaited rebound in digital assets may just be getting started.
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