Bitcoin News Today: Bitcoin Bounces on Shutdown Resolution, Eyes Regulatory Clarity Breakthrough

Bitcoin Holds Above $105K as Traders Eye Shutdown Deal, Liquidity Boost

Bitcoin held steady above $105,000 on Monday as U.S. lawmakers neared a resolution to end the 40-day government shutdown, a development analysts say could unlock market liquidity and reignite crypto demand. The Senate voted 60-40 to advance a bipartisan funding bill Sunday night, with final approval expected within days. The shutdown, which froze government operations and delayed critical economic data releases, had weighed on risk assets, including cryptocurrenciesU.S. Shutdown Ends After 40 Days, Analysts Predict Bitcoin To Hit $112K.

The resolution comes amid growing optimism that the Federal Reserve will soon have access to updated inflation metrics, which could influence monetary policy decisions. Analysts like Shanaka Anslem Perera of Coinpedia argue the shutdown's end and a projected drop in consumer price index (CPI) data create a "dual catalyst" for Bitcoin, potentially pushing it toward $112,000U.S. Shutdown Ends After 40 Days, Analysts Predict Bitcoin To Hit $112K. Meanwhile, President Donald Trump's proposal to distribute $2,000 dividend payments from tariff revenue has further bolstered risk appetite, with crypto markets responding to the improved macroeconomic outlookBitcoin, Ethereum Surge as US Senate Advances Bill to End Government Shutdown.

The shutdown's prolonged uncertainty had stalled progress on key crypto legislation, including the CLARITY Act (House) and the Responsible Financial Innovation Act (Senate). These bills aim to establish a unified regulatory framework for digital assets but faced delays as lawmakers prioritized reopening federal agenciesU.S. Senate Votes on Government Reopening Amid Crypto Regulation Delays. Senator Cynthia Lummis, a leading advocate for the legislation, had hoped to advance the bill through Senate committees by fall, but political gridlock has pushed timelines into 2026U.S. Senate Votes on Government Reopening Amid Crypto Regulation Delays.

Market participants are now watching for regulatory clarity to resume. The Commodity Futures Trading Commission (CFTC) is expected to approve leveraged crypto trading in the U.S. next month, a move that could attract institutional capitalCFTC Set to Approve Leveraged Crypto Trading in the U.S. Next Month – Institutions Coming?. Additionally, the resumption of government operations may expedite the approval of spot crypto ETFs, a long-sought milestone for the industryRaoul Pal on Crypto Crash: 'Road to Valhalla Is Getting Very Close'.

Bitcoin's price trajectory has been volatile since the shutdown began. It briefly surged to $126,080 on Oct. 6 but fell over 17% to $104,370 amid geopolitical tensions and Trump's 100% tariff announcementCrypto Could Get Relief as US Senate Cuts Deal to End Shutdown: Report. However, the recent 4.4% rally to $106,119 suggests renewed confidence as shutdown risks recedeBitcoin, Ethereum Surge as US Senate Advances Bill to End Government Shutdown. Ether and altcoins like XRP and Solana also saw gains, with analysts attributing the bounce to improved liquidity and reduced macro uncertaintyBitcoin, Ethereum Surge as US Senate Advances Bill to End Government Shutdown.

Prediction markets like Polymarket and Kalshi have priced in a high probability of the shutdown ending this week, with traders betting on a resolution by FridayCrypto Could Get Relief as US Senate Cuts Deal to End Shutdown: Report. The market's focus now shifts to whether the Senate deal will pave the way for broader fiscal reforms and regulatory progress in 2026.