Key Points
- The U.S. senators reached an initial agreement on Sunday, November 9, to end the ongoing U.S government shutdown in the next few days.
- The news is having a bullish impact on the crypto market, which had been reeling under macro pressure.
- The bitcoin reclaimed $106k level, and other major cryptocurrencies such as Ethereum (ETH), XRP, Binance coin (BNB), and Solana (SOL), are up today.
- The reopening of the government is anticipated to expedite the Securities and Exchange Commission’s (SEC) ETF approvals and the timely release of economic data.
- As we are on the cusp of seeing a major headwind turning into a tailwind, the investors are largely optimistic about a rebound.
The U.S. senators reached an agreement on Sunday, November 9, which is supposed to end the ongoing U.S government shutdown in the next few days. The news is having a bullish impact on the crypto market, with bitcoin taking the lead. The most valued cryptocurrency has reclaimed $106k level, and the price is up by around 3%.
Meantime, the shutdown, which has entered its 40th day, has become the longest one in U.S history. The current agreement reached by senators passed the initial obstacle with a vote of 60-40; it further needs the approval from the House and U.S President Trump.
Bitcoin Shows Signs of Rally with a Strong Rebound, Ethereum Follows Suit
At the time of writing the article, Bitcoin is trading at $106,010.51, the price is up by 4%.
Source: TradingView
The market cap has reached a valuation of $2.11 trillion. The token is currently trading above the 10-day Exponential Moving Average (EMA) of 105,306. Moreover, the price is above the 10-Day Simple Moving Average (SMA) of 105,027.
The Fear and Greed Index, even though still lying in fear state, is improving, showing the shift in market sentiments. The 14-day Relative Strength Index (RSI) value of 46 suggests that the token may be consolidating.
The Ethereum (ETH) is currently trading around $3,606.70, and the price is up by more than 6% in the past 24 hours. The market cap has touched 435.4 billion. The token is trading above the 10-day Exponential Average. Furthermore, the other flagship tokens, such as XRP, Binance coin (BNB), and Solana (SOL), are up today.
Traders Eye Rally as U.S. Re-opening May Speed ETF Approvals & Data Releases
Historically, back in 2019, when the U.S government shutdown ended, the price of Bitcoin surged more than 300%. The crypto Analyst Ash Crypto noted that the last time the U.S. government reopened after a shutdown, Bitcoin had made a five-month rally, surging by over 300%.
The shutdown has put a huge macropressure on the crypto market, pushing the investors to recalibrate their investment to minimize the risks. The reduced risk appetite has resulted in investors staying away from the emerging markets, such as crypto, which was also hit by the largest deleveraging event in crypto history back in October. A strong macro signal is needed for a rebound.
The reopening of the government is anticipated to expedite the Securities and Exchange Commission’s (SEC) Exchange Traded Funds (ETF) approvals and the timely release of economic data. Data release is crucial for the Fed’s upcoming decisions as well. The Fed chair, Mr. Jerome Powell, earlier had compared the decision-making amid shutdown without key economic data such as inflation and job reports, to navigating through fog.
The Bottom Line: A Crypto Rally Around the Horizon?
The prolonged U.S government shutdown is a major macro pressure weighing strongly on the crypto market, and a shift in the same will definitely send renewed momentum to the market. The reopening will bring more regulatory clarity, may accelerate the ETF approvals, expedite the passage of crypto-friendly legislation, and ensure the timely release of crucial economic data.
As we are on the cusp of seeing a major headwind turning into a tailwind, the investors are largely optimistic about a rebound. Nevertheless, a strong macro signal is crucial for a prolonged rally, as the crypto market is now more sensitive to economic indicators and monetary policy.