Crypto Markets Turn Green as Political Stability Returns to Washington

The cryptocurrency market surged on Monday after U.S. lawmakers struck a last-minute deal to end the country’s record-breaking 40-day government shutdown, a resolution that has reignited risk appetite across global markets.

Late Sunday, the U.S. Senate approved a bipartisan stopgap bill following tense negotiations between Senate Majority Leader John Thune, the White House, and key Democratic moderates. The bill funds federal operations until January 30, guarantees back pay for 1.4 million furloughed workers, and secures continued financing for programs such as veterans’ benefits, agriculture, and SNAP food assistance through next year.

Crypto Rebounds on Renewed Stability

The resolution quickly rippled through financial markets. Bitcoin (BTC) jumped 4% to $106,000, reclaiming momentum after dipping below $103,000 in the previous week. Ethereum (ETH) followed with a 5.2% rise to $3,600, while XRP led the large-cap rally, surging 8.4% to $2.47 amid a broader rotation into altcoins.

Other major gainers included Solana (SOL), up 4.5% to $166, Chainlink (LINK) climbing 6% to $16.25, and Cardano (ADA) rising 4% to $0.59. The day’s standout performer was Zcash (ZEC), which soared nearly 16%, extending its impressive week-long rally to more than 70%.

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Sentiment Turns Risk-On Again

Market strategists say the rebound reflects renewed liquidity confidence as political uncertainty eases. The shutdown resolution removes one of the major macro overhangs that had weighed on investor sentiment throughout October and early November.

Analysts note that while the deal is temporary, it provides a critical window of stability ahead of upcoming U.S. inflation data (CPI and PPI), which could further shape risk appetite in mid-November.

If inflation trends softer and the funding agreement holds, traders expect the crypto market’s risk-on momentum to continue – potentially paving the way for a stronger finish to the fourth quarter.