FameEX Hot Topics | US Senate Reaches Deal to End Shutdown, Potentially Offering Crypto Market Relief: Report

According to a report from Politico, the US Senate has finally reached an agreement on a three-part budget deal, bringing an end to the record 40-day government shutdown. The pending legislation is said to have comfortably surpassed the necessary 60-vote threshold, marking a success for Republican Senate Majority Leader John Thune after 15 attempts to secure Democratic support. While an official vote is still required to finalize the agreement, this development signals that the political deadlock is nearing its conclusion.

The prolonged government shutdown has been a major factor suppressing Bitcoin and the broader digital asset market, creating a cloud of uncertainty that hindered any sustained recovery. Market data illustrates this pressure clearly: after an initial rally to $126,080 in early October, Bitcoin's price has since retreated sharply. CoinGecko data shows a decline of over 17%.

Historical context offers a compelling reason for investor optimism. The conclusion of the previous government shutdown in January 2019 acted as a powerful catalyst for a monumental Bitcoin bull run. After that 35-day impasse ended on January 25, 2019, Bitcoin embarked on a staggering 266% ascent over the subsequent five months, soaring from $3,550 to $13,000. This precedent suggests that the removal of such a major macroeconomic uncertainty has previously unleashed substantial pent-up demand and positive sentiment toward crypto assets.

This optimistic outlook is being reflected in real-time prediction markets, which are now betting heavily on an imminent resolution. On the platform Polymarket, traders are pricing in a 54% probability that the shutdown will be lifted between Tuesday and Friday of this week, with a specific focus on Thursday. The competing platform Kalshi shows a similar consensus, estimating that the shutdown will most likely end on Friday, its 44th day. The crypto market may soon be free from a significant downward pressure.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.