Quick Take: Key Developments
- Senate Breakthrough: U.S. senators reached bipartisan funding deal, passing legislation 60-40 to end 40-day government shutdown
- Bitcoin Rally: BTC surged 4.4% to $106,119, while ETH jumped 7.8% to $3,632 on renewed market optimism
- Broad-Based Gains: XRP led with 8.4% gain, followed by SOL (+7.8%), ETH (+7.8%), BTC (+4.4%), and BNB (+3.7%)
- Next Steps: Bill must pass House before heading to President Trump’s desk for signature
- Market Impact: Easing liquidity pressures and improved macro sentiment driving risk asset recovery
Bitcoin, Ethereum and other major cryptocurrencies surged late Sunday on renewed optimism in global markets, buoyed by news that the prolonged U.S. government shutdown may finally end soon as the Senate passed critical funding legislation in a bipartisan 60-40 vote.
Bitcoin climbed 4.4% in the past 24 hours to trade at $106,119 as of late Sunday night, while ether jumped an impressive 7.8% to $3,632. The rally extended across the broader cryptocurrency market, with XRP gaining 8.4%, BNB adding 3.7%, and Solana rising 7.8%, demonstrating widespread investor enthusiasm.
The cryptocurrency market’s Sunday night rally comes amid a broader rebound in market sentiment following reports that U.S. senators have reached a bipartisan funding deal, marking the first concrete step toward ending the 40-day government shutdown that has paralyzed federal operations and created economic uncertainty.
On Sunday night, the Senate voted 60-40 on the funding legislation, demonstrating sufficient bipartisan support to advance the bill. The 60-vote threshold indicates the measure secured backing from members of both parties, overcoming the partisan gridlock that has characterized recent shutdown negotiations.
However, the legislative process remains incomplete. The bill still needs to pass the House of Representatives before heading to President Donald Trump’s desk for his signature. While the Senate vote represents significant progress, the shutdown will not officially end until all these steps are completed and the President signs the measure into law.
“The prolonged shutdown had the effect of draining liquidity in the overnight funding market, contributing to market jitters over the last few weeks. The removal of this overhang paves the way for risk assets to price in a favorable macro environment — namely, looser monetary policy, conclusion of trade disputes, and likely fiscal pump-priming ahead of the mid-term election next year.”
— Peter Chung, Head of Research, Presto Research
Vincent Liu, chief investment officer at Kronos Research, offered similar views on the drivers behind Sunday’s cryptocurrency rally, emphasizing the combination of easing macro uncertainty and renewed policy optimism. His comments highlight how multiple positive factors are converging to support risk asset prices.
Liu’s reference to “Trump’s proposed tariff dividend” suggests that recent developments in trade policy may also be contributing to improved market sentiment. While trade tensions have been a recurring concern for global markets, any signs of progress or beneficial policy adjustments can quickly boost risk appetite among investors.
The “improving macro backdrop” that Liu describes encompasses several elements beyond just the shutdown resolution. These include expectations for continued Federal Reserve rate cuts, stabilizing economic data (when available), and reduced political uncertainty that had been clouding the investment outlook.
“Crypto is climbing as Trump’s proposed tariff dividend boosts risk appetite. The improving macro backdrop, driven by optimism around a potential end to the U.S. government shutdown, is reinforcing the recovery momentum.”
— Vincent Liu, Chief Investment Officer, Kronos Research
