US Government Shutdown Deal Boosts Crypto Market Rally
US senators passed a bipartisan funding bill to end the 40-day government shutdown, extending federal funding through January 30, 2026, halting planned job cuts and restoring services. The government shutdown relief sparked a crypto market rally. Bitcoin rebounded above $106,000, Ethereum surged 6%, and XRP climbed 8%. BNB and SOL also gained ground. Futures volumes rose and funding rates turned positive as traders opened leveraged longs. On-chain data showed Bitcoin futures open interest rose by $700 million, indicating relief buying. Traders recall the 2019 shutdown rebound when Bitcoin rose over 300% in five months after liquidity improved. With final approval pending in the House and the president’s signature required, market watchers now focus on US inflation data and Fed policy decisions. These factors will determine if the short-term optimism sustains.
Bullish
In the short term, the end of the government shutdown has freed liquidity and boosted trader confidence, triggering a swift rally in major cryptocurrencies. On-chain metrics like increased futures open interest and positive funding rates confirm strong leveraged long positioning. Historically, similar shutdown resolutions led to extended rallies (e.g., 2019 rebound). Long term, further upside hinges on the bill’s final passage, upcoming US inflation data and Fed policy decisions. These factors could temper or sustain the current momentum, but for now the immediate price impact is decidedly bullish.