US shutdown end spurs recovery in crypto markets; Bitcoin, Ethereum rebound

The crypto market has shown tentative signs of recovery, with Bitcoin rebounding above $102,000 after dipping to weekly lows near $100,800 amid a rotation of capital toward equities and gold. The move follows US President Donald Trump’s signing of a government funding bill, ending a record 43-day shutdown that left federal workers unpaid, stranded travellers at airports, and created long queues at food banks.

 

The development, analysts said, suggests investors are temporarily favouring policy-linked assets, with risk appetite split between safe-haven and cyclical exposures.

 

The end of the 43-day US government shutdown, signed by Trump, Riya Sehgal, research analyst, Delta Exchange, said, brings relief to global markets but also marks a period of readjustment that could impact crypto. 

 

The data blackout leaves the Federal Reserve cautious ahead of its December meeting, likely leaning dovish, a stance, Sehgal believes, that could weaken the dollar and support risk assets like Bitcoin and Ethereum.

 

"The reopening of agencies such as the SEC and CFTC also revives pending ETF approvals and crypto-related rulemaking, improving long-term regulatory clarity, said Sehgal.”

 

At last check, Bitcoin was trading at $102,708, down 0.56 per cent over 24 hours, with a trading volume of $71.58 billion, according to CoinMarketCap. During the session, it traded between $100,836 and $105,297. Despite a 19 per cent drop from its October 7 peak of $126,198, Bitcoin’s market capitalisation remains at $2.04 trillion, underscoring its dominance in the crypto ecosystem.

 

Analysts noted that on-chain data indicates accumulation by long-term holders, including 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, CEO of Giottus, advised investors to treat the current phase as a macro-led pause. “Flows are rotating toward equities and gold. Add crypto risk only on confirmed closes back above $105,000 with improving spot volume. Use the $100,000 area as your risk line.”

 

Subburaj added, “Options markets show rising protective-put demand there. If you lose it on heavy spot selling, stand down and wait for stability. If a shutdown resolution releases $150–200 billion and yields ease, watch for ETF net inflows and broader breadth (BTC, ETH, and majors) before scaling. Until then, keep exposure light, liquid, and hedgeable. Prefer BTC/ETH and deploy via TWAP or limits.”

 

Ethereum, on the other hand, saw strong investor demand, trading at $3,533, up 2.36 per cent over 24 hours, with a trading volume of $37 billion. The token earlier slipped to $3,373 but rebounded sharply, moving in a range of $3,373.71–$3,586.01.

 

Among other major cryptocurrencies, XRP was up 7.16 per cent, BNB rose 1.62 per cent, Dogecoin gained 7.10 per cent, and Cardano increased 5.55 per cent over the past week. In contrast, Hyperliquid, TRON, USDC, and Solana fell 2.01 per cent, 3.36 per cent, 0.09 per cent, and 0.41 per cent, respectively.