Cryptocurrencies rebounded on Monday as traders grew optimistic that the U.S. government shutdown may soon end, potentially unlocking a $150–$200 billion liquidity boost, according to Arca’s head of research.
Bitcoin (BTC) fell 1.5% early in the U.S. session to around $102,756 but recovered to trade near $106,000 by late afternoon. Ether (ETH) edged down 0.5% to just under $3,600, while Solana (SOL) rose 1.1% to $167.
Altcoins showed mixed activity. XRP led gains with a 9% jump amid anticipation of a U.S. spot-based ETF launch. Meanwhile, privacy-focused coins Zcash (ZEC, $455) and Monero (XMR, $386) declined 9% and 11%, respectively, following strong rallies in recent weeks.
Crypto-related equities also saw upward momentum. Coinbase (COIN) gained 4.1%, Robinhood (HOOD) rose 4.8%, eToro (ETOR) added 9%, and Gemini (GEMI) climbed 5.2%. Traditional markets followed suit, with the S&P 500 up 1.6% and Nasdaq advancing 2.2%.
Market optimism is partly fueled by a late Sunday post from former President Donald Trump proposing a $2,000 “tariff dividend” for Americans. Polymarket data shows traders now assign an 86% probability that the shutdown could end between November 12–15.
Regulatory Delays Remain a Risk
David Nage, head of research at Arca, highlighted the broader implications of the shutdown for U.S. crypto policy. While a resolution could release substantial liquidity into bank reserves—historically benefiting risk assets—prolonged closure is stalling key legislative initiatives, including the CLARITY Act and the Senate’s digital asset market structure bill.
“If comprehensive digital asset legislation is delayed until 2026 and then falters due to midterm politics, the industry risks losing the clarity needed to attract institutional capital and achieve sustainable growth,” Nage said.
He emphasized that although the shutdown’s impact has been less visible than recent market volatility, it could be more significant for long-term crypto adoption. “Committee offices remain empty, and regulatory progress is on hold,” he noted.
Nage concluded that timing is critical: “If the shutdown ends this month, markets may benefit from both a liquidity injection and a legislative window. If it extends into December, that opportunity could be lost.”
About The Author
More Stories
According to Galaxy Digital’s research chief, Bitcoin faces a highly unpredictable 2026.
According to Fidelity’s Jurrien Timmer, 2026 could be underwhelming while Bitcoin’s four-year cycle remains intact.
BlackRock’s Bitcoin ETF attracts $25 billion over the year, defying the recent Bitcoin downturn.