Is the US Government Shutdown Over? Why It Is Bullish

After weeks of uncertainty, the US government shutdown may finally be nearing its end. Reports from Politico reveal that the US Senate has reached a preliminary agreement on a three-part budget bill that would reopen the government. 

This move could trigger a wave of optimism in both the financial markets and cryptocurrency sectors, which have been held back by macroeconomic instability.

The Senate’s Deal and Its Market Implications

According to Politico, the pending legislation to fund the US government already has enough support to pass the critical 60-vote threshold. The bipartisan breakthrough comes after multiple failed attempts to reconcile the Republican-led House and Democratic Senate. If officially passed, it would end the record 40-day shutdown, restoring confidence in federal operations and fiscal stability.

For investors, this development represents a clear bullish signal. Market confidence often rebounds sharply when political gridlocks are resolved. In 2019, following a similar shutdown, Bitcoin surged 266%, rising from $3,550 to over $13,000 within months.

READ ALSO: Is the US Government Secretly Buying Bitcoin?

Bitcoin and Crypto Markets Eye Relief

Throughout the shutdown, Bitcoin (BTC) has struggled to maintain momentum, falling from $126,000 to around $104,000 amid fears of prolonged government inactivity and trade tension following President Trump’s 100% tariff announcement on China.

With news of the Senate deal, however, crypto traders are preparing for a turnaround. Historically, political clarity and renewed liquidity inflows tend to drive Bitcoin price rallies and improve sentiment across altcoins. As the government gears up to reopen, analysts predict that capital will rotate back into risk assets, especially crypto.

Prediction Markets Signal Confidence

On-chain prediction platforms reflect growing optimism. Polymarket bettors now assign a 54% probability that the shutdown will end between Tuesday and Friday, compared to just 27% a day earlier. Rival platform Kalshi also shows similar odds, projecting the end of the shutdown by Friday—marking 44 days of federal closure.

Additionally, Trump’s recent announcement of a $2,000 tariff dividend for 85% of American adults adds another layer of liquidity optimism. This stimulus-like effect could further boost spending power and investor appetite for assets like Bitcoin, gold, and stocks.

Why This Is Bullish for Crypto

The end of the US government shutdown represents more than political resolution—it’s a sentiment catalyst. Historically, crypto markets thrive on renewed economic confidence and relief from macro uncertainty. If the Senate’s deal passes, it could ignite a short-term Bitcoin rally, reminiscent of the 2019 surge post-shutdown.

Furthermore, with inflation pressures easing and fiscal clarity improving, traders could view this as a buy-the-dip opportunity, pushing Bitcoin and major altcoins toward recovery zones.

READ ALSO: U.S. Government Shutdown Sparks Flight to Gold & Bitcoin: What’s Next for Markets?

Conclusion

While an official vote is still pending, the momentum toward ending the US government shutdown is strong—and that’s great news for crypto. With historical data showing massive Bitcoin rebounds following past shutdowns, this potential reopening could mark the start of a new bullish phase for digital assets.

For more in-depth crypto market updates and predictions, check out the latest posts on the Bitrue blog — or explore trading directly on Bitrue’s platform.

FAQ

What is the US government shutdown?

It occurs when Congress fails to pass a budget, causing many federal operations to pause.

Why does ending the shutdown matter for crypto?

Political stability restores investor confidence, often triggering bullish sentiment in risky assets like crypto.

How did Bitcoin perform after the last shutdown?

In 2019, Bitcoin surged over 265% within five months after the shutdown ended.

When might the shutdown officially end?

Prediction markets like Polymarket suggest it could end between Tuesday and Friday this week.

Will the crypto market react immediately?

Likely yes—historically, Bitcoin shows strong upward momentum following major macroeconomic resolutions.