Digital Assets Rebound as U.S. Government Shutdown Nears End
Jannick Bröring
Spotlight:
The digital assets market is showing renewed strength amid signs the prolonged U.S. government shutdown may soon end, boosting investor confidence after a volatile week. Bitcoin rebounded sharply in to $106,269, marking a 4.2% gain, while Ethereum outperformed majors with a 5.8% jump to $3,597. This move recoups significant losses as easing macro uncertainty fueled rotation back into high-beta crypto assets.
This positive market reaction follows clear signs of progress in Washington. On Sunday 9th, a new 31-page bill advanced in the Senate with a 60-40 vote, signaling the record-breaking 40-day stoppage could soon end; consequently, S&P 500 rose 0.5%, and gold prices rose above the $4,000 level.
At the same time, the prolonged shutdown has added significant uncertainty, delaying key data releases (incl. CPI, PPI, and the monthly jobs report) and damaging consumer confidence. Notably, the University of Michigan’s consumer sentiment index dropped to its lowest reading in more than three years, hovering just above record lows. While the reopening will release this data, traders are now skeptical the SEC will have time to approve a Cardano ETF before year-end, with market odds dropping from 90% just a month ago to only 38% today, according to CoinDesk.
