Bitcoin and Ethereum's Sharp Rally on November 10, 2025: Short-Term Momentum and Catalysts for Sustained Recovery

The crypto market's abrupt reversal on November 10, 2025, marked a pivotal moment. Bitcoin surged past $106,000 for the first time in nearly a week, while Ethereum climbed over 7% to $3,600, signaling a shift from risk-off to risk-on sentiment. This rally was not a random fluctuation but a response to a confluence of macroeconomic, regulatory, and on-chain catalysts. Understanding these drivers is critical for investors seeking to navigate the next phase of crypto's journey.

The Immediate Catalyst: U.S. Government Shutdown Resolution

The most direct trigger for the November 10 rally was the U.S. Senate's agreement to end the 40-day government shutdown-the longest in U.S. history. This resolution alleviated fears of prolonged economic paralysis, which had previously driven investors toward safe-haven assets like gold and U.S. Treasuries. With the political impasse resolved, capital began flowing back into risk assets, including cryptocurrencies. According to a Coinotag report, Bitcoin's 4% gain above $106,000 and Ethereum's 7% rebound reflected broader market optimism. Altcoins like XRP and Solana also followed Bitcoin's lead, with the total crypto market cap rising by over 5% as reported in the same report.

Sustaining the Momentum: Liquidity Injections and Regulatory Clarity

While the government shutdown resolution provided a short-term boost, longer-term recovery hinges on deeper structural factors. Raoul Pal, CEO of Real Vision, argues that liquidity injections from the U.S. Treasury and Federal Reserve will play a critical role. The Treasury is projected to deploy $250–350 billion in stimulus post-shutdown, while the Fed's temporary repurchase operations have already injected $30 billion into the financial system, as detailed in a Coinotag analysis. These measures are designed to stabilize markets and could fuel further inflows into crypto, particularly as ETFs and institutional treasuries rebalance portfolios.

Regulatory developments also loom large. The CLARITY Act, currently under Senate review, could unlock a new era for crypto by allowing banks to custody and trade spot crypto ETFs at scale. If passed, this legislation would reduce legal uncertainties and potentially unlock billions in institutional capital. As stated in the Coinotag analysis, the CLARITY Act's passage is "a linchpin for sustained recovery," as it would enable mainstream financial institutions to participate in the crypto market without regulatory overhang.

On-Chain Signals: Demand and Hash Rate Growth

Beyond macro and regulatory factors, on-chain data tells a compelling story. Bitcoin's realized cap-a measure of the total value of coins not moved in the last 30 days-surged by over $8 billion in late November, indicating strong demand from long-term holders and ETFs, according to a Coinotag report. Analysts estimate that renewed ETF inflows could reach $10–15 billion, potentially pushing Bitcoin toward $140,000 if the Fed implements rate cuts in Q4 2025. Meanwhile, Bitcoin miners are expanding operations, with hash rate growth reinforcing the network's resilience and long-term value proposition, as noted in the same report.

Risks and Uncertainties

Despite these bullish signals, risks remain. The CLARITY Act's passage is not guaranteed, and any delay could stifle institutional adoption. Additionally, the Fed's rate-cut timeline is still uncertain, and a hawkish pivot could reignite risk-off sentiment. Investors must also monitor altcoin performance, as divergent trends could signal fragility in the broader market.

Conclusion: A New Phase for Crypto?

The November 10 rally was more than a technical rebound-it was a vote of confidence in crypto's resilience. With liquidity injections, regulatory progress, and on-chain strength aligning, the stage is set for a sustained recovery. However, this momentum will only endure if policymakers and market participants continue to prioritize clarity and innovation. For now, Bitcoin and Ethereum are not just assets-they are barometers of a financial system in transition.