Bitcoin Rises on Hopes of End to U.S. Government Shutdown

As the U.S. federal government shutdown enters its third week, financial markets are signaling renewed optimism. Bitcoin’s price has rebounded sharply, rising to $111,711.03, as investors respond positively to remarks from White House Economic Advisor Kevin Hassett, who hinted that a breakthrough in negotiations could occur within days.

“There’s a shot that this week, things will come together, and very quickly,” Hassett told CNBC, sparking a wave of gains across both digital assets and traditional equity markets.

Political Progress Sparks Investor Confidence

The current deadlock in Congress centers around an extension of health insurance tax credits, a sticking point for Senate Democrats who remain steadfast in their position. On the opposing side, Republican leaders, including Vice President JD Vance, argue that such provisions equate to taxpayer-funded healthcare for undocumented immigrants.

However, a shift may be underway. Republican Senate Majority Leader John Thune has proposed a compromise that could move negotiations forward, offering a guaranteed vote on the issue within a defined timeline.

Crypto Markets Rally on Hopes of a Deal

In response to the improving political climate, Bitcoin's value jumped by 2.1%, peaking at $111,711.03 before settling at $110,300.70, according to data from CoinMarketCap. Although still down 3.75% over the past week, the rebound is a clear indicator of renewed market optimism.

Other key metrics reinforce this sentiment:

• Trading volume surged 42.4%, reaching $61.49 billion.
• Overall market capitalization climbed to $2.19 trillion (+1.05%).
• Bitcoin’s dominance rose to 59.74% (+0.28%).

This uptick reflects not only a technical bounce but also growing speculation that a political resolution could stabilize broader economic uncertainty—conditions that often benefit digital assets perceived as alternative stores of value.

Futures and Liquidations Indicate Upbeat Sentiment

Investor activity in derivatives markets supports the trend. Open interest in Bitcoin futures rose by 2.73% to $72 billion, while daily liquidations fell to $123.26 million. Notably, short positions accounted for $77.16 million, suggesting traders had bet against a recovery—only to be squeezed as sentiment shifted.

According to data from Coinglass, this reversal highlights Bitcoin’s responsiveness to macroeconomic and geopolitical developments, particularly in a high-stakes environment like a U.S. government shutdown.

What This Means for Investors

The interplay between Washington politics and financial markets is once again on display. Should lawmakers reach a resolution this week, as some now anticipate, it could serve as a catalyst not only for reopening the government but for driving sustained gains in both crypto and equities.

Bitcoin’s recent performance underscores its role as a barometer for investor sentiment—especially during times of political uncertainty. Traders and long-term holders alike will be watching Capitol Hill closely in the days ahead.