US Senate Deal Could End Shutdown, Bringing Hope for Crypto Relief

TLDR

• The US Senate has reached an agreement on a three-part budget deal to end the government shutdown.
• Bitcoin has dropped by over 17% from its high of $126,080 during the government shutdown.
• Prediction markets now show a 54% chance that the shutdown will end between Tuesday and Friday this week.
• President Trump announced a $2,000 dividend for most Americans from tariff revenue, adding to market uncertainty.
• A resolution of the government shutdown could provide stability and relief to Bitcoin and other cryptocurrencies.

The US Senate has reached an agreement on a three-part budget deal to end the ongoing government shutdown. According to a report from Politico, pending legislation has enough support to pass the 60-vote threshold. The shutdown, which has lasted over 40 days, may soon be lifted.

US Senate Deal Hints at Crypto Relief

Bitcoin (BTC) has faced challenges during the US government shutdown. The cryptocurrency rallied to $126,080 on October 6 but has since dropped 17%, now sitting at $104,370. This drop occurred as the shutdown extended and created uncertainty in the markets.

Bitcoin’s decline was also impacted by external factors. On October 10, President Donald Trump’s announcement of 100% tariffs on China shook global markets. The uncertainty surrounding the shutdown has been a major concern for Bitcoin investors.

The US Senate deal signals that the shutdown may end soon, potentially bringing relief to the crypto market. Bettors on the prediction platform Polymarket have raised their expectations. They now predict a 54% chance the shutdown will end between Tuesday and Friday this week.

Prediction markets on Kalshi suggest a similar outcome. They estimate the shutdown will likely end on Friday, 44 days after it began. This agreement could provide Bitcoin and the broader crypto market with the stability needed to recover.

The government shutdown has been a key factor in preventing Bitcoin from recovering in recent weeks. As uncertainty about the shutdown persists, Bitcoin’s price has struggled to make significant gains. However, a resolution in Washington may provide the stability needed for a potential rebound.

Tariff Announcement Causes Market Volatility

On Sunday, President Trump announced that most Americans will receive a $2,000 dividend from tariff revenue. This move aims to ease public concerns over the economic impact of the trade war. The announcement has also impacted crypto markets, as investors weigh the implications for broader financial stability.

Although the government shutdown continues, relief could be on the way. If the Senate’s deal passes, it will end the longest shutdown in US history. This would mark the beginning of renewed confidence in Bitcoin and other cryptocurrencies, which have been waiting for stability.

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