Bitcoin Climbs Past $106K Following Longest U.S. Shutdown
Bitcoin jumped above $106,000 for the first time in nearly a week after multiple reports indicated that the U.S. Senate reached a deal to end the 40-day government shutdown, the longest in U.S. history.
According to CoinGecko, the largest cryptocurrency by market capitalization rose over 4%, while other major digital assets also moved strongly into positive territory. Ethereum (ETH) traded above $3,600, up more than 7%, and XRP and Solana (SOL), the fourth- and sixth-largest coins respectively, climbed around 6%.
Extended Shutdown Pressured Crypto Markets
The government impasse had weighed heavily on markets, with Bitcoin falling below $100,000 several times for the first time since early August. Despite the recent rebound, BTC remains over 15% below its all-time high above $126,000, set in early October.
Ethereum experienced even greater losses over the same period as investors moved away from risk-on assets. Recent market turbulence was fueled not only by the shutdown but also by broader macroeconomic uncertainties.
Over the past eight trading days:
- 11 spot Bitcoin ETFs saw more than $2.1 billion in asset outflows.
- Nine Ethereum funds reported net outflows totaling $579 million.
Crypto-related stocks also suffered. Coinbase shares plunged over 9% last week, while Bitcoin Treasury Strategy fell more than 8%.
Senate Deal Brings Relief to Markets
As the story neared publication, reports from Politico, The Wall Street Journal, and The New York Times confirmed that Senate Democrats and Republicans reached a deal to reopen the government.
The resolution followed negotiations in which moderate Democrats agreed to vote in favor of procedural motions that would fund the government. Democrats had initially emphasized extending health subsidies to make insurance more affordable, but the duration of the shutdown appeared to take priority.
Meanwhile, the Myriad prediction market showed users assigning over a 90% probability that the government shutdown would end before November 15, up from roughly 37% in the previous 24 hours. (Myriad is a unit of Dastan, Decrypt’s parent company.)
