TLDR
- Analysts predict Bitcoin could reach $130,000 following the end of the US government shutdown.
- VALR CEO Farzam Ehsani sees the $110,000 level as the key start of a new bull cycle.
- Optimism is also driven by the idea of new $2,000 stimulus checks proposed by Trump.
The end of the United States government shutdown could drive a new Bitcoin record. This is what analysts are predicting after the Senate voted on Monday to end the government shutdown.
The move, which ends the longest federal shutdown in United States history, is expected to inject a dose of optimism into markets, which had been trading cautiously after a painful $20 billion deleveraging event on October 10.
Farzam Ehsani, CEO of crypto exchange VALR, told DL News that the news “opens the pathway for a broader rebound.” Ehsani added that Bitcoin is headed for $130,000 if it manages to reclaim the $110,000 level, which he described as “the beginning of a new upside market cycle.” Currently, Bitcoin’s price is trading just above $105,000.
Optimism returns to the crypto market
Although there is still no date for a formal reopening of the federal government, the Senate’s approval clears the way for the House of Representatives to meet on Wednesday to vote on the bill, where it is expected to pass. The impact on the Bitcoin price from the government shutdown comes as the overall $3.6 trillion crypto market trades sideways, recovering 5% from its early November lows.
Optimism is not limited to cryptocurrencies. US tech stocks also rallied; Nvidia climbed 5.8% and Palantir 8.8%. In the crypto space, the “bleeding” from spot Bitcoin exchange-traded funds (ETFs) has stopped, notching $1.i2 million in net inflows on Monday, according to DefiLlama data.
Adding to the positive tone, President Donald Trump has reignited hopes for fiscal support by proposing the idea of $2,000 rebate checks, funded by tariff revenue.
This plan evokes the pandemic-era stimulus payments that helped ignite the last major crypto rally. Now, with the shutdown ending, attention turns to Thursday’s Consumer Price Index (CPI) report and the Federal Reserve’s possible decision to cut interest rates in December.
