For more than 40 days, US government agencies were paralyzed by the longest shutdown in US history. The situation has now been resolved, leading to a surge in global stock markets.
End of the US government shutdown
Since October 1, the United States has been experiencing a historically long shutdown, triggered by the inability of Republicans and Democrats to reach an agreement on the finance bill. This situation came to an unexpected and favorable conclusion on Wednesday, November 12.
President Donald Trump has just signed a funding bill, initially approved by the House of Representatives, involving all members of his party, but also a handful of Democrats who were clearly eager to end this deadlock in the US government.
However, it is important to note that this breakthrough remains temporary, as the bill signed by the US president includes a deadline of January 30, 2026. In other words, negotiations on certain sensitive issues—such as maintaining subsidies for the Obamacare program—will remain very active in the coming weeks.
Many analysts agree on the positive impact of this reopening of the US government, mainly because it could trigger renewed interest in the risky asset market. Could this be good news for cryptocurrencies?
European stock markets hit new records
As soon as Donald Trump’s signature was announced, global stock markets showed a notable upturn in activity. For example, the CAC 40 ended its session on November 12 up, following a new historic high of 8,280.97 points. At the time of writing, this record has already been smashed, with the index now above 8,300 points.
At the same time, the London and Madrid stock exchanges are also posting historic highs, while Milan is recording a record high not seen since 2000, in what some analysts identify as “a shift in investment flows towards Old Continent stocks, at the expense of US stocks, led by technology stocks.”
The question now is to estimate the upside potential that this announcement could have on the price of Bitcoin and the cryptocurrency market in general. This is particularly true considering Donald Trump’s recently announced payment of a $2,000 customs dividend to all Americans with modest incomes.
The price of BTC has reacted quite unevenly during previous shutdowns, falling 6% during the previous longest shutdown (35 days) initiated by Donald Trump in 2018 during his last term in office. For the moment, Bitcoin is down 2% over the last 24 hours.
