US Agreement to End Shutdown Sparks a 5% Crypto Rebound

From a technical perspective, Bitcoin has reclaimed the $104,000-$105,000 range after strong support near $101,000 | Photo credit:

“This development eased liquidity concerns and increased investor confidence in risky assets. Bitcoin’s short-term correlation of 0.70 with the S&P 500 shows how closely it tracks broader market sentiment. From a technical perspective, Bitcoin has reclaimed the $104,000-$105,000 range, after maintaining strong support near $101,000. A clear move above $106,500 could lead the way leveling out to $108,000 – $110,500,” said Riya Sehgal, research analyst at Delta Exchange.

Giottus CEO Vikram Subburaj elaborated on this momentum, adding that the decline in US Federal Reserve repo loans points to an easing of dollar liquidity. The US Dollar Index (DXY) rally has stalled at key resistance, suggesting the USD’s recent rise may be losing steam.

ETF inflows

As the US Senate reached a budget deal to end the government shutdown, US President Trump proposed a $2,000 tariff dividend. While budget execution remains uncertain, the combined story of liquidity expansion and potential consumer stimulus has improved risk sentiment after weeks of macroeconomic stress. Investors are looking for confirmation via ETF inflows and continued gains in stocks to support this change.

The crypto market’s sharp recovery after the end of the government shutdown reveals a unique dual relationship with traditional fiscal stability, setting it apart from conventional risk assets.

“Unlike the stock market, which suffered from macroeconomic fears, crypto’s response was mixed. There was an initial bearish shock; the shutdown led to a severe liquidity crisis in the broader financial system. Because crypto markets often rely on traditional dollar liquidity channels such as stablecoin redemptions and cross-exchange arbitrage, this uncertainty created significant macro headwinds, leading to the sharpest correction and leveraged liquidation cascade of the year,” explains Sathvik Vishwanath, co-founder and co-founder and CEO of Unocoin.

At the same time, the political dysfunction solidified Bitcoin’s narrative as a hedge against government instability and fiscal mismanagement. During the shutdown, some analysts noted that investors moved money into Bitcoin, viewing it as a digital, independent store of value outside the frozen US financial system.

liquidity shock

Vishwanath added that the recovery was driven more by the removal of the liquidity shock than by pure economic confidence. As regulatory functions resume, such as clarity on future ETF filings in the spot market, the restart of SEC operations, and improved market liquidity, Bitcoin’s structural demand from institutions and its steady supply are regaining their influence.

Ethereum, on the other hand, rose above $3,500 and is facing resistance at $3,720; a breakout could push the price towards $3,820-$3,925. Overall, as macro uncertainty subsides, crypto markets appear positioned for a steady, sentiment-driven recovery.

Published on November 10, 2025