Bitcoin Sees Gains Following Government Shutdown Developments
Over the weekend, Bitcoin saw a rise after President Trump opted to proceed with a deal that could potentially put an end to the government shutdown. For many Americans, this could mean receiving a $2,000 tariff “dividend.”
Bitcoin is up by 3.6% over the last 24 hours, although the Bitcoin ETF has experienced asset levels dipping below $100,000 multiple times, witnessing an outflow of about $1.22 billion. In light of this, CoinMarketCap’s Fear and Greed Index showed a score of 29 on Monday morning, an increase from 24:00 on Sunday.
“Crypto markets are stepping into the new week with a sense of renewed optimism and clearer positioning. An interplay of fiscal transparency, stimulus momentum, and stabilizing ETF flows is paving the way for a promising November. While markets aren’t overly excited, they are more grounded,” noted Timothy Misiel, head of research at Blockhead Research Network.
Meanwhile, traders’ expectations derived from event contracts suggest there’s a 28% chance Bitcoin could surpass $130,000 this year. They are also pricing in a 9% likelihood of it reaching $150,000 or more.
Misiel pointed out that risks to Bitcoin’s recovery include ongoing ETF outflows, potential delays in policy actions due to the government shutdowns and “tariff dividends”, as well as rising market leverage. However, he expressed confidence that the reset phase has concluded.
“The restructuring has started. For investors, this is a chance to think critically about market directions, even if it’s not a full commitment yet,” he added.
Nic Puckrin, co-founder of Coin Bureau, mentioned to Sherwood News that the resolution of the government shutdown may allow Bitcoin’s rally to continue. Still, the absence of necessary economic data to help the Fed decide on interest rate cuts next month might cause additional volatility.
“Investors in Bitcoin will likely stay anxious until the outlook on monetary policy becomes clearer,” he said.
Maja Vujinovic, CEO and co-founder of digital assets at FG Nexus, shared similar sentiments, stating that while the end of the shutdown removes certain macro uncertainties, the key factors driving Bitcoin still revolve around ETF inflows and liquidity trends. “We’re hopeful for stability more than an abrupt government change,” she remarked.
