The price of Bitcoin has climbed to approximately USD 105,000, marking a gain of nearly 3% in the past 24 hours. This rise comes as political developments in the United States hint that the federal government may soon reopen after its longest shutdown in history.
The Political Catalyst
After around 40 days of gridlock, the U.S. federal government is edging closer to resuming operations following a partial shutdown that had forced roughly 750,000 federal employees into temporary leave.
Media and financial-market sources report that a bipartisan continuing resolution (CR) bill is being prepared — one that would fund government operations through January 30.
On social media, analysts pointed out that in past shutdowns, the resolution of political uncertainty has coincided with significant rallies in Bitcoin.
Why Bitcoin’s Price Reacted
Markets view the resolution of such a shutdown as a positive signal for macro conditions:
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Fixing the shutdown removes a layer of uncertainty in U.S. fiscal policy, which can support broader investor confidence.
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Improved confidence often translates into greater appetite for risk assets and crypto.
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Some market participants view the opening as a psychological “green light” that could spark increased flows into Bitcoin.
For example, one analyst noted: “When the U.S. government resumed operations in early 2019 after a shutdown, Bitcoin went on a 300 %+ rally over five months.”
The Cautionary Note
While the correlation between the government reopening and Bitcoin’s rally is notable, it’s important to recognise that correlation ≠ causation. Market historians stress that:
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In the 2018-2019 shutdown, Bitcoin actually had dropped to around USD 3,600 at the bottom before recovering.
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The later large move upward was driven by multiple factors including liquidity, sentiment and broader economic trends — not just the shutdown ending.
Therefore, while the reopening may act as a catalyst, it is unlikely to be the sole driver of any sustained up-trend.
What to Watch Going Forward
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Federal Reserve policy & liquidity – Ongoing monetary decisions by the Federal Reserve (Fed) may have stronger influence than the shutdown news.
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Funding rates and open interest – Data shows that Bitcoin’s open interest has increased by nearly USD 700 million, and funding rates are climbing, indicating more bullish speculative positions.
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Market sentiment / risk-assets behaviour – If government operations resume and broader markets rally, crypto risk-assets could benefit. Conversely, if reopening is delayed or the economy weakens, Bitcoin could face headwinds.
Conclusion
Bitcoin’s move to USD 105,000 underscores how macro- and political-events can rapidly affect the crypto market. While the hope of a U.S. government reopening appears to be fueling bullish momentum, investors should remain aware that this may be a short-term impulse rather than a guarantee of long-term trend. As always, comprehensive risk-assessment is key.
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