40-Day Shutdown Nears Conclusion, Sending Bitcoin Above $105K

Senate Republicans and Democrats finally agreed to a deal that could see the longest government shutdown in U.S. history come to an end, assuming everything goes as planned.

Bitcoin Climbs to $105K as 40-Day Government Shutdown Finally Shows Signs of Resolution

It’s rather uncommon to see eight Senate Democrats go counter to their own party leadership on such a high stakes issue, but that’s exactly what happened on Sunday evening when Republicans managed to woo just enough votes from across the aisle to pass a measure, that if approved by both chambers of Congress, will finally end the longest federal government shutdown in U.S. history. Bitcoin climbed to $106K on the news, before settling at $105K on Monday morning.

The unprecedented shutdown has brought the government to a grinding halt. Thousands of U.S. flights were canceled or delayed after The Federal Aviation Administration (FAA) announced reductions in travel capacity at 40 of the country’s busiest airports. Most air traffic controllers and airport security agents are not receiving their pay due to the federal closure. Low-income Americans have also been affected, as government-funded food stamps have been delayed or halted for many of the nearly 42 million Americans who rely on the country’s Supplemental Nutrition Assistance Program (SNAP).

(Thousands of U.S. flights have been delayed or canceled as the ongoing government shutdown enters day 41) But after Sunday’s deal, Congress may finally turn the corner and converge on a deal that could see the government up and running again in a matter of days. The procedural measure agreed to by the eight defecting Democrats will provide funding for the government until the end of January, while allowing for a December vote to extend health insurance tax credits under the Affordable Care Act (ACA), the key sticking point in the months-long negotiations.

“For over a month, I’ve made clear that my priorities are to both reopen government and extend the ACA enhanced premium tax credits,” said New Hampshire Senator Jeanne Shaheen, one of the eight Democrats who supported the measure on Sunday. “This is our best path toward accomplishing both of these goals.

Overview of Market Metrics

Bitcoin was trading at $105,823.93 at the time of reporting, up 2.15% since Sunday, but still down 1.45% for the week. Coinmarketcap data shows the cryptocurrency’s price has fluctuated between $103,357.13 and $106,564.70.

( Bitcoin price / Trading View) Trading volume over the past 24 hours was up 38.88% at $74.1 billion, a figure that also accounts for the expected post-weekend surge. Market capitalization rose to $2.22 trillion and bitcoin dominance was also on the up, gaining 0.13% and reclaiming 60% after a tumultuous week.

( Bitcoin dominance / Trading View) Total value of bitcoin futures open interest reached $69.01 billion, a gain of 1.77% according to data from Coinglass. Liquidations were lower over 24 hours as fortunes reversed and short sellers saw $85.09 million wiped out. Overeager bulls also got liquidated, but to a lesser degree, losing $30.79 million and bringing total bitcoin liquidations for the day to $115.88 million.

FAQ ⚡

• Why did bitcoin jump above $105K?

News that U.S. lawmakers reached a breakthrough deal to end the 40-day government shutdown boosted market confidence.

• Who helped make the deal possible?

Eight Senate Democrats crossed party lines to support a Republican-backed measure funding the government through January.

• How severe was the shutdown’s impact?

It grounded flights, halted pay for federal workers, and delayed food-stamp benefits for more than 40 million Americans.

• What’s next for markets and policy?

Congress must still pass the measure this week, but easing shutdown risks could keep bitcoin and equities on firmer ground.