Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Bitcoin traded flat in early Asia on Tuesday, while stocks and gold extended gains after the US inched closer to ending the longest government shutdown in its history.
The Senate passed a funding deal late Monday that would restore federal operations, and the bill now moves to the House for a vote, before heading to President Trump for signoff.
Asian equities were mostly higher. South Korea’s Kospi rose 1.3% as it clawed back last week’s losses, and Japan’s Nikkei added 0.4%. Hong Kong and mainland China traded slightly lower by mid-morning, suggesting investors there were more cautious. S&P 500 futures were steady.
Market snapshot
- Bitcoin: $105,373, down 0.9%
- Ether: $3,548, down 1.4%
- XRP: $2.48, up 1.4%
- Total crypto market cap: $3.64 trillion, down 0.7%
Markets Recover As US Senate Moves To End 40-Day Government Shutdown
The relief trade extended beyond equities. Gold jumped nearly 3% overnight and held comfortably above $4,100 in Asia hours. The Nasdaq climbed 2.3 percent, recovering much of last week’s slide when traders punished expensive AI-linked names and questioned the sustainability of their margins.
The backdrop shifted after the US Senate approved a 60-40 deal to fund federal agencies and end the shutdown, which has run for more than 40 days. The bill keeps the government funded through Jan. 30, 2026, restores pay and jobs for laid-off federal workers, protects food assistance through Sept. 2026, and promises a December vote on Affordable Care Act subsidies.
House Speaker Mike Johnson has said he wants to move quickly, with a House vote as soon as Wednesday. The market is already pricing in an early reopening, with prediction platforms showing high confidence the shutdown will end this week.
Markets Ease Into Risk As Shutdown Progress Offsets Softer Fed Expectations
Safe havens eased as investors leaned back into risk. The yen weakened and US Treasury yields initially ticked higher, showing less demand for protection. Some of that move later faded as Federal Reserve officials pushed back on the idea of a rapid rate cut, and bond traders reassessed how much easing the Fed will tolerate in December.
Fed tone matters for crypto. Bitcoin tends to trade as a high beta macro asset when liquidity expectations shift. A credible path to ending the shutdown removes one source of fiscal stress, steadies risk sentiment and reduces the odds of further forced selling in digital markets that had been bracing for prolonged instability in Washington.
Clearer Rules And Macro Relief Encourage Institutional Flows Into Crypto
“Global risk appetite surged today as US equities rallied, led by NVIDIA’s 5.8% jump, its largest daily gain since April,” said Riya Sehgal, research analyst at Delta Exchange. She said the rebound in big tech had reignited optimism across risk assets and that some of that renewed appetite is bleeding into crypto.
Sehgal said regulatory moves are adding to that momentum. She pointed to the Senate action to reopen the government, a bipartisan draft in the Agriculture Committee that would give the CFTC clearer authority over digital commodities, and fresh IRS guidance that allows crypto ETFs and trusts to earn staking rewards.
She said those signals are supporting inflows and backing Bitcoin’s move off $100,000 toward $107,000, with Ether above $3,600. She added that if Bitcoin can clear resistance in the $107,000 to $111,000 zone, the market could see a broader uptrend in major digital assets.
Gracy Chen, CEO at Bitget, said she views the Senate’s shutdown deal as a step toward restoring economic stability. She also called the push to define CFTC oversight of crypto a long-awaited break for the industry, saying it gives the market more predictability and trust.
“Together, these developments signal a maturing regulatory landscape, one that encourages innovation without stifling growth, fostering greater predictability and trust across digital asset markets,” Chen said. She added that with macro stress easing, institutional money is more likely to come in under clearer rules, which could lift liquidity, trading volumes and overall participation into year end.
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