Senate Reaches Deal to End Record Government Shutdown, Boosting Crypto Market Hopes

The crypto market may soon get a long-awaited boost after the U.S. Senate reached an agreement on a three-part budget deal aimed at ending the record-breaking government shutdown, according to Politico. The pending legislation reportedly has more than enough support to clear the 60-vote threshold required for passage, signaling an imminent reopening of the government.

The deal marks a significant breakthrough after weeks of deadlock. Republican Senate Majority Leader John Thune achieved the agreement on his 15th attempt to gain Democratic backing for the House-approved funding bill. Although a final vote is still pending, optimism has spread through both political and financial circles that the 40-day shutdown could be lifted within days.

Crypto Market Awaits Rebound

Uncertainty over the shutdown’s duration has weighed heavily on the crypto market, particularly Bitcoin. The leading cryptocurrency surged to a record high of $126,080 on October 6, before retreating sharply. Since then, Bitcoin has fallen over 16%, currently trading around $106,270, according to data from CoinMarketCap.

Analysts suggest that the market’s decline has been amplified by broader economic concerns, including U.S. President Donald Trump’s announcement of 100% tariffs on Chinese imports. The news, delivered on October 10, triggered widespread selloffs across global markets, further pressuring digital assets.

This situation mirrors the last major U.S. government shutdown between December 2018 and January 2019, also under Trump’s administration. 

When that shutdown ended on January 25, 2019, Bitcoin’s price skyrocketed over the following months, gaining 265% from $3,550 to around $13,000 by midyear. Many traders are now speculating whether history might repeat itself once government operations resume.

Prediction Markets Expect Shutdown to End This Week

Prediction markets are also pointing toward a quick resolution. On blockchain-based betting platform Polymarket, users currently assign a 54% probability that the shutdown will end between Tuesday and Friday, up from just 27% the previous day. 

Similarly, rival platform Kalshi projects the situation will conclude on Friday, marking its 44th day.

Adding to the political developments, President Trump announced on Sunday that most Americans will soon receive a $2,000 dividend funded by tariff revenues. Around 85% of adults will be eligible for the payout, excluding higher-income individuals.

If the deal passes as expected, the end of the shutdown could reignite momentum across the cryptocurrency sector.