Political Gridlock Ends, Crypto Markets Respond

Bitcoin’s price rebounded Thursday morning after dipping below $101,000 on Wednesday, a recovery that coincided with the end of a 43-day U.S. government shutdown. The resolution came after the House passed a funding deal with a 222 to 209 vote, which President Trump then signed into law.

The new legislation reopens federal operations, reversing widespread layoffs and restoring paychecks for government employees. The end of the political uncertainty, which marked the longest government shutdown in U.S. history, appeared to bring a sense of relief to the cryptocurrency markets. Shortly after the deal was signed, Bitcoin saw an immediate increase of nearly $3,000.

ETF Flows and Recent Market Sentiment

The price increase aligns with predictions from some analysts, who had suggested that the next rally would follow the end of the shutdown. Despite the positive news, recent data on Bitcoin Exchange-Traded Funds (ETFs) shows a cautious market. Over the last week, Bitcoin ETFs recorded only $247 million in inflows, a modest figure compared to the significant outflows seen in late October and early November.

Those earlier outflows were largely a reaction to a market-wide event in early October that erased $500 billion from the total crypto valuation, shaking institutional confidence. In the aftermath, many corporate treasury buyers and ETF operators pulled back, limiting the capital available to drive Bitcoin’s price higher.

Bitcoin’s Recent Trading Performance

Prior to this week’s rebound, Bitcoin’s price action had been largely stagnant, causing many retail and speculative traders to lose interest. The asset struggled to break past the $110,000 resistance level since early October and spent most of November trading below $105,000, even briefly falling under the $100,000 mark.

As risk appetite returned to the market on Thursday, other major cryptocurrencies also saw positive movement. Ethereum traded above $3,500, and XRP reclaimed the $2.50 price level.

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