Crypto Rallies as U.S. Senate Ends 40-Day Government Shutdown

Cryptocurrency markets experienced a dramatic turnaround as reports emerged that Senate Democrats and Republicans had reached a deal to end the 40-day government shutdown, the longest in U.S. history. According to multiple sources including Politico, The Wall Street Journal, and The New York Times, the breakthrough came after a group of moderate Democrats agreed to vote in favor of procedural motions that would fund the government, resolving a political standoff that had weighed heavily on financial markets.

The resolution followed weeks of intense negotiations where Democrats had insisted on extending health subsidies to make insurance less expensive, though the unprecedented length of the government shutdown ultimately trumped those concerns. The timing of the agreement aligned with prediction market data from Myriad, a unit of Dastan (Decrypt’s parent company), which showed users giving a more than 90% chance that the government closure would end before November 15 – a dramatic increase from approximately 37% over the previous 24 hours.

Bitcoin, the largest cryptocurrency by market value, jumped past $106,000 for the first time in nearly a week, registering a more than 4% gain according to data provider CoinGecko. The move represented a significant recovery from recent lows that saw Bitcoin tumble below $100,000 on several occasions for the first time since early August. Despite the rally, BTC remains more than 15% off its record high above $126,000 set in early October.

Ethereum, the second-largest cryptocurrency by market capitalization, broke past $3,600 for the first time in almost a week, posting a more than 7% gain. Other major digital assets followed suit, with XRP and Solana – the fourth- and sixth-largest coins respectively – both climbing about 6% apiece. The coordinated upward movement across major cryptocurrencies signaled a broad return of risk appetite among investors who had veered away from risk-on assets during the prolonged government impasse.

The government shutdown had created significant market turbulence in recent weeks, with investors fretting not only about the political standoff but other macroeconomic uncertainties. During the eight trading days leading up to the Senate agreement, the 11 spot Bitcoin ETFs experienced substantial pressure, losing more than $2.1 billion in assets. Similarly, net outflows for the nine Ethereum funds totaled $579 million during the same period, reflecting investor caution amid the political uncertainty.

Crypto-related stocks also suffered during the market downturn, with exchange giant Coinbase plunging more than 9% last week and Bitcoin treasury strategy falling over 8%. The extended shutdown period saw Ethereum lose even more ground than Bitcoin relative to their recent peaks, highlighting the particular sensitivity of alternative digital assets to macroeconomic and political developments. The resolution of the government funding impasse provided immediate relief across the cryptocurrency ecosystem, though markets remain watchful for further political developments that could impact investor sentiment.