Bitcoin’s price saw relative stability Tuesday morning, while stocks and gold deepened gains after the United States moved closer to ending the longest government shutdown in its history, after the Senate approved a funding deal late last night, Monday, that would restore federal government operations. The bill was put to the House of Representatives for a vote, before being sent to President Trump for signature.
All this pushed the majority of Asian stocks higher. South Korea’s Kospi index rose 1.3%, paring some of its losses from last week, and Japan’s Nikkei index rose 0.4%, while Hong Kong stocks and Chinese shares settled slightly lower by mid-morning, indicating investors there are taking a more cautious approach. In the same context, futures contracts on the Standard & Poor’s 500 index (S&P 500) also stabilized.
Look at market performance
- Bitcoin price: $105,373, down 0.9%
- Ethereum Price (Ethereum-ETH): $3,548, down 1.4%
- Ripple Coin Price (Ripple-XRP): $2.48, an increase of 1.4%
- Total value of crypto assets: $3.64 trillion, down 0.7%
Markets recover as the US Senate decides to end the 40-day government shutdown.
The market rally was not limited to the stock market alone but also extended to gold, which rose by around 3% during the evening trading activities, leading its price to settle above the $4,100 level during the Asian trading session. The Nasdaq index also rose 2.3%, paring most of last week’s losses, as traders refrained from buying shares of companies in the artificial intelligence sector due to their exaggerated rise in value, questioning the sustainability of their profit margins.
On the other hand, the situation changed after the US Senate approved a 60-40 deal to fund federal agencies, ending a shutdown that lasted more than 40 days. This law will continue government funding until January 30, 2026, allowing laid-off federal employees to return to their jobs and wages, and to obtain food assistance until September 2026, with the promise that the bill that could be voted on in December will provide health care at lower costs.
For his part, House Speaker Mike Johnson said he wants to act quickly, with the House of Representatives possibly voting on the bill tomorrow, Wednesday, as markets have already priced these developments, with market expectations highlighting growing confidence that the government lockdown will end this week.
Risk appetite is improving amid balance resulting from the imminent end of the government shutdown and expectations of monetary easing from the Federal Reserve.
Safe-haven asset prices fell as investors’ risk appetite improved, as the Japanese yen (JPY) fell and US Treasury yields rose, indicating a decline in demand for hedge assets. Some of those measures later faded as Fed officials reconsidered the approach of cutting interest rates quickly, prompting bond traders to weigh the effects of monetary easing the Fed might adopt in December.
The Federal Reserve’s positions are known to have a strong impact on crypto markets because Bitcoin, being a risk asset, tends to react to changes in liquidity expectations, while a reliable path to ending the government shutdown has removed a source of financial pressure, supporting risk appetite and reducing the possibility of forced liquidations in crypto markets that were bracing for prolonged instability in Washington.
Clarity of rules and easing economic pressures encourage institutional investment in crypto markets.
In the same vein, Riya Sehgal, crypto analyst at the research department of the Delta Exchange platform, said: “Global risk appetite improved today with the rise in US stocks, led by a rise in NVIDIA shares of 5.8%, which is their biggest daily increase since April. » She also pointed out that the rally in big company stocks has reignited optimism about risk assets, and that some of this improvement is seeping into the crypto sector.
Regulatory moves add to that momentum, Segal continued, pointing to the Senate’s decision to reopen the government and a bill with bipartisan support from the Agriculture Committee that would give the Commodity Futures Trading Commission (CFTC) clearer authority over digital products, alongside new guidance from the Internal Revenue Service (IRS), which allows crypto ETFs to provide a staking feature.
She added that these signals supported the arrival of new investments that pushed the price of Bitcoin from the $100,000 level to $107,000, with the price of Ethereum surpassing $3,600. Segal then explained that if the Bitcoin price manages to break the $107,000 resistance barrier and reach $111,000, it could push the major digital assets into a new wave of bull market.
For her part, Bitget CEO Gracy Chen said she views the Senate’s agreement to end the government shutdown as a step toward restoring economic stability. She also described efforts to limit the CFTC’s oversight of digital currencies as a break the industry has long awaited, and noted that it gives the market additional predictability and adds more confidence to the overall situation.
“Together, these developments indicate that the regulatory landscape is becoming more sophisticated and encourages innovation without hindering growth, thereby fostering greater predictability and confidence in digital asset markets,” she continued. In conclusion, Segal added that with economic pressures easing, it is likely that institutional investments will increase in light of clearer rules, which will boost liquidity, trading volumes and participation in general until the end of the year.
The post Asian Market Open: Bitcoin (BTC) Price Consolidates and Stocks See a Rise as Progress is Made to End US Government Shutdown appeared first on Cryptonews Arabic.
