On Wednesday, President Donald Trump signed legislation to end the 43-day government shutdown, the longest in modern U.S. history. The move reopened federal agencies and restored services that had been paused. The bill passed the House with a 222–209 vote and includes continuing appropriations to fund agencies through January 30, 2026. It also provides back pay for hundreds of thousands of federal employees who were furloughed or worked without pay.
Markets responded positively to the resolution, with risk assets rising as fiscal uncertainty eased. Bitcoin climbed toward $105,000, a roughly 6.7% increase from recent lows, while Ethereum approached $3,600. Stocks and other risk markets also rallied as traders unwound defensive positions. Analysts noted that the end of the shutdown reduced macroeconomic uncertainty, encouraging investment flows.
Despite the positive reaction, some analysts caution that the gains may be temporary, especially if political gridlock returns or if major cryptocurrencies face technical resistance. Lawmakers from both parties are already gearing up for future policy battles, as the funding deal left some issues unresolved.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic Trump signs bill to end government shutdown sparking rally in crypto markets designed to be clear concise and helpful for a wide range of readers
General Beginner Questions
1 What was the government shutdown
A period when nonessential US government services closed because Congress and the President couldnt agree on a budget to fund them
2 Why did the government shutdown affect the crypto market
Government shutdowns create economic uncertainty Investors get nervous about traditional markets so some move their money into alternative assets like cryptocurrency hoping they will be more stable or see gains
3 What does it mean that the crypto market rallied
A rally is a period of sustained price increases When the shutdown ended prices for major cryptocurrencies like Bitcoin and Ethereum went up significantly in a short amount of time
4 How does a government shutdown ending cause a crypto rally
Ending the shutdown restores confidence in the governments stability and the traditional economy This renewed confidence can lead to increased investment across the board including in riskier assets like crypto It also means key financial regulators are back at work which reduces uncertainty for the crypto industry
Intermediate Market Impact Questions
5 Which cryptocurrencies were most affected by this rally
Typically major wellestablished cryptocurrencies like Bitcoin and Ethereum see the most immediate impact Sometimes the positive sentiment can also spill over into other popular altcoins
6 Is this a common reaction Do crypto markets always rally after a shutdown ends
Not always but its a recognized pattern Crypto often acts as an alternative or riskon asset When fear is high prices can be volatile When fear subsides investors may feel more comfortable taking on risk boosting crypto prices
7 What are the risks of investing based on this kind of news
The primary risk is that the rally might be shortlived Markets can be driven by shortterm sentiment which doesnt always reflect longterm value Prices can correct just as quickly as they rise
8 Did the bill Trump signed have any specific crypto regulations in it
In this specific scenario no The bill was focused on funding the government The rally was a reaction to the decreased