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The US government shutdown has ended after forty days, and the news has lifted hopes across the cryptocurrency market. Approximately $180 billion to $300 billion of frozen funds will soon start moving again through the economy. This may help digital coins like Bitcoin and Ethereum rise further.
The shutdown had stopped government spending, delayed contracts, and left federal workers unpaid. With normal work starting again, this money will now reach workers, companies, and small businesses. Analysts believe this large cash flow could bring a fresh wave of activity in the financial markets.
The Crypto Fear and Greed Index has already moved from 22 to 29, showing that anxiety is slowly turning into confidence. This shift often happens when investors expect better conditions ahead.
Federal workers will receive their pay back, increasing their discretionary income. The resumption of government contracts will lead to the flow of funds towards companies working in the areas of defense, research, and technology. The restarting of loan programs that were earlier discontinued will also contribute to the financial support of small businesses and farms.
Crypto prices are already reacting. Bitcoin jumped above $106,000, while Ethereum and other altcoins gained value too. Trading activity has grown fast, showing stronger interest from both retail and large investors.
Analysts say this is a good sign for the market. Many believe that as liquidity returns, risk-taking will increase, and crypto could lead the way up. Stablecoin supply has also climbed near $300 billion, showing that money is ready to move into the digital asset space.
The end of the shutdown also clears the path for new crypto ETF approvals that were delayed. This could bring more big investors into the market.
Some market watchers expect a small correction before a steady rise. Others think this may be the start of a strong new rally that could push Bitcoin close to $250,000 in the next two years.
The Senate has already approved a funding deal, and the House is expected to pass it soon. Once that happens, the full release of funds will start flowing through the economy.
The US shutdown’s end has eased fear, brought back spending, and restored confidence. With fresh liquidity entering the system, the crypto market could see a strong rise in the coming weeks.
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