The US government shutdown, which has lasted for over a month, is showing signs of ending, potentially alleviating negative impacts on markets, including cryptocurrencies. The US Senate has taken a significant step towards reopening the government by passing a temporary funding bill that will extend government operations until January.
This crucial bill received 60 votes in favor and 40 against, following reports of a partial agreement among senators to resolve the shutdown. Previously, fourteen attempts in the Senate to pass a budget bill had failed to secure the necessary 60 votes. While challenges remain, this vote marks a significant development that could lead to the shutdown's conclusion by the end of the current week.
The proposed bill now requires approval from the House of Representatives before being sent to US President Donald Trump for his signature. President Trump had previously indicated his belief that the shutdown would conclude soon.
Bitcoin and Altcoins Experience Uptrend Amidst Renewed Optimism
Bitcoin (BTC), Ethereum (ETH), and various altcoins have begun the new week with an upward trend. This positive movement is largely attributed to a resurgence of optimism in global markets, spurred by the news that the US government shutdown may be nearing its end.
In the past 24 hours, Bitcoin saw a 4.5% increase, reaching $106,100. Ethereum experienced a more substantial rise of 6.5%, trading at $3,600. Other cryptocurrencies also showed gains, with XRP up 8.4%, BNB up 3%, and Solana up 7%.
Peter Chung, Head of Research at Presto Research, commented on the situation, stating that the Senate's positive political development has helped to ease recent market pressures. Chung explained that the prolonged shutdown had reduced market liquidity and intensified market tensions. However, he noted that the receding of this situation now creates an environment where risk assets can factor in a positive macro outlook, including expectations of looser monetary policy, the resolution of trade disputes, and anticipation of the upcoming midterm elections.
Vincent Liu, chief investment officer at Kronos Research, echoed this sentiment, attributing the rise in Bitcoin and altcoins to both decreasing macroeconomic uncertainty and a renewed sense of policy optimism.