Bitcoin and Ethereum recover after US shutdown
The crypto market is displaying cautious signs of recovery, as Bitcoin has bounced back above $102,000 after reaching weekly lows close to $100,800, coinciding with a shift of capital towards equities and gold. The action comes in the wake of US President Donald Trump’s signing of a government funding bill, which has brought an end to a historic 43-day shutdown that resulted in federal workers going unpaid, stranded travelers at airports, and long lines forming at food banks. Analysts noted that the development indicates a temporary preference among investors for policy-linked assets, as risk appetite appears divided between safe-haven and cyclical exposures. The conclusion of the 43-day US government shutdown, which was signed by Trump, has been described by Riya Sehgal, as a source of relief for global markets, though it also signifies a phase of readjustment that may influence the crypto landscape.
The data blackout has prompted the Federal Reserve to adopt a cautious approach as it approaches its December meeting, likely favoring a dovish stance, and Sehgal suggests that this could lead to a weakening of the dollar, potentially benefiting risk assets such as Bitcoin and Ethereum. “The reopening of agencies like the SEC and CFTC brings back pending ETF approvals and crypto-related rulemaking, enhancing long-term regulatory clarity,” said Sehgal. In the latest update, Bitcoin is priced at $102,708, reflecting a decrease of 0.56 percent over the past 24 hours, with a trading volume of $71.58 billion, as per reports. Throughout the session, the asset fluctuated between $100,836 and $105,297, and even with a 19 per cent decline from its October 7 high of $126,198, Bitcoin’s market capitalisation still stands at $2.04 trillion, highlighting its strong position within the crypto landscape.
Analysts observed that on-chain data reveals accumulation by long-term holders, highlighted by over $1.3 billion in recent Ethereum whale purchases. “This divergence between sentiment and accumulation suggests confidence beneath fear. Historically, such phases of extreme caution have set the stage for strong rebounds, making November a potentially pivotal month for crypto markets,” Sehgal said. Vikram Subburaj urged investors to view the current phase as a macro-led pause, noting that “flows are rotating toward equities and gold.” He advised introducing crypto risk solely on confirmed closes surpassing $105,000 with an uptick in spot volume and using the $100,000 zone as a risk threshold. Subburaj noted, “Options markets show rising protective-put demand there,” and suggested stepping back if losses occur due to heavy spot selling, while monitoring potential ETF inflows and overall market breadth should a shutdown resolution unlock $150–200 billion and ease yields.
Ethereum experienced robust investor interest, currently trading at $3,533, reflecting a 2.36 percent increase over the past 24 hours, with a trading volume of $37 billion; the token previously dipped to $3,373 but recovered, fluctuating between $3,373.71 and $3,586.01. In the latest market movements, XRP surged by 7.16 per cent, while BNB saw an increase of 1.62 per cent. Dogecoin experienced a notable gain of 7.10 per cent, and Cardano climbed by 5.55 per cent over the past week. Conversely, Hyperliquid, TRON, USDC, and Solana experienced declines of 2.01 percent, 3.36 percent, 0.09 percent, and 0.41 percent, respectively.
