Bitcoin, Ethereum surge as US Senate advances bill to end government shutdown

Bitcoin, Ethereum and other major cryptocurrencies surged on renewed optimism in global markets, buoyed by news that the U.S. government shutdown may end soon.

Bitcoin climbed 4.4% in the past 24 hours to trade at $106,119 as of late Sunday night, while ether jumped 7.8% to $3,632, according to The Block's price page. XRP gained 8.4%, BNB added 3.7% and Solana rose 7.8%.

The gains come amid a rebound in broader market sentiment following reports that U.S. senators have reached a bipartisan funding deal, marking a first step toward ending the 40-day government shutdown. On Sunday night, the Senate voted 60-40 on the legislation, which still needs to pass the House before heading to President Donald Trump's desk for signature.

Peter Chung, head of research at Presto Research, said that the political breakthrough has helped ease recent market pressures. 

“The prolonged shutdown had the effect of draining liquidity in the overnight funding market, contributing to market jitters over the last few weeks," Chung said. "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."

Vincent Liu, chief investment officer at Kronos Research, shared similar views, saying that the combination of easing macro uncertainty and renewed policy optimism helped drive the rally. 

"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," Liu told The Block. 

Over the weekend, U.S. President Donald Trump proposed using tariff revenues to distribute $2,000 dividend payments to Americans and to cover portions of their health care expenses, according to his post on Truth Social.

Market eyes fed signals, inflation data

The government reopening, however, carries significance beyond immediate market sentiment, according to Jeff Mei, COO of BTSE.

"More critical is the fact that economic datasets will become available again, giving the Fed more indicators to work with when deciding policy adjustments. With no data during the shutdown, the Fed was likely to just wait and sit tight. Now we may see more actions taken to stimulate the economy," said Mei.

Nick Ruck, director of LVRG Research, pointed to improving liquidity conditions as a primary catalyst. "The recent uptick appears primarily triggered by improved U.S. financial liquidity signals, including a stalling dollar index momentum, which historically favors risk assets like cryptocurrencies," Ruck said. While the shutdown deal has eased uncertainty, he noted it's "likely a secondary factor amid ongoing institutional inflows."

Traders are now watching for confirmation of the Senate deal, more details on Trump's tariff dividend plan, and upcoming inflation data, according to Liu of Kronos. ETF inflows and bitcoin dominance levels will also be key indicators of whether the rally broadens to altcoins or remains focused on major tokens, Liu said.

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