The U.S. government has been paralyzed for over a month, in what appears to be the longest “shutdown” in U.S. history. This situation could finally come to an end following a recent agreement between Democrats and Republicans.
Is an Imminent End to the U.S. Government Shutdown on the Horizon?
The U.S. government has been completely paralyzed since October 1, following a failure by Democrats and Republicans to reach an agreement on the budget bill. On November 5, this situation made history by becoming the longest government shutdown in the country’s history.
In practice, more than 700,000 federal employees are without pay, while ongoing administrative procedures and the release of key economic data are no longer guaranteed. Despite this, the SEC’s first approvals of spot crypto ETFs marked a decisive milestone at the end of October.
At the same time, Republicans and Democrats are trying to find common ground—even if it is temporary and still fragile—to break the deadlock. A first step in this direction, viewed as positive, has just been taken in the Senate, with an agreement reached to ensure government funding through January.
However, the bill must still pass the House of Representatives before reaching Donald Trump’s desk for final approval. These steps do not seem to be discouraging bettors on the Polymarket platform, with an 85% probability of a resolution by the end of this week at the latest.
Polymarket bettors see an 85% chance of the shutdown ending
The crypto market reacts positively
This announcement of a possible end to the shutdown—even if only temporary—seems to be giving the cryptocurrency market a bit of a bullish boost. Indeed, the sector’s top 10 cryptocurrencies by market capitalization have posted gains ranging from 2% to over 8% over the past 24 hours, though these gains are still struggling to offset the losses recorded over the past 7 days.
Bitcoin is up 4.5% over this period, allowing it to return to the strategic level of around $106,000. It will need to break through this resistance on the daily timeframe (at a minimum) to confirm a sustained return above this threshold.
Bitcoin returns to the $106,000 level
Meanwhile, Donald Trump has just announced the payment of a “dividend of at least $2,000 per person (excluding high-income earners)” directly funded by revenue from his increased tariffs. This is very good news for risky assets, according to Vincent Liu, Chief Investment Officer at Kronos Research.
Cryptocurrency prices are rising as Trump’s proposed “tariff dividend” boosts risk appetite. The improving macroeconomic environment, driven by optimism surrounding a potential end to the U.S. government shutdown, is reinforcing the recovery momentum.
Vincent Liu
Could the end of the U.S. government shutdown provide the momentum needed for a bullish rebound in Bitcoin? It’s possible, according to some analysts who believe that BTC’s bull run hasn’t even truly begun yet.
