In early trading on Tuesday in Asia, Bitcoin remained relatively unchanged, while stocks and gold prices continued to rise following a significant milestone in the US government’s efforts to end its longest shutdown in history. Late on Monday, the Senate approved a funding agreement that seeks to restore federal operations, moving now to the House of Representatives for a vote before it reaches President Trump for final approval.
Asian equities reflected this positive sentiment, with South Korea’s Kospi Index climbing 1.3%, recovering from losses sustained the previous week. Japan’s Nikkei Index also increased by 0.4%. However, markets in Hong Kong and mainland China displayed a more cautious approach, trading slightly lower by mid-morning. Futures for the S&P 500 remained steady during this period.
In terms of cryptocurrency, the market saw some fluctuations: Bitcoin was priced at $105,373, down 0.9%; Ether sat at $3,548, a 1.4% decrease; and XRP experienced a 1.4% rise to $2.48. The total cryptocurrency market capitalization was reported at $3.64 trillion, marking a 0.7% decline.
The relief rally extended beyond equities as gold prices surged nearly 3%, maintaining a comfortable position above $4,100 during Asian trading hours. The Nasdaq Index had a notable upswing, increasing by 2.3%, as it bounced back from a significant drop experienced the previous week, largely due to concerns regarding expensive AI-linked stocks and their sustainability.
The Senate’s approval of a 60-40 funding deal, which is set to keep the government funded until January 30, 2026, has had far-reaching impacts. The measure reinstates pay and jobs for federal workers who were recently laid off, ensures food assistance until September 2026, and promises a Congressional vote in December regarding subsidies for the Affordable Care Act.
House Speaker Mike Johnson has emphasized a desire for quick movement on this issue, indicating that a House vote might occur as early as Wednesday. The market is currently factoring in an impending end to the shutdown, with prediction platforms reflecting a high level of confidence in this outcome.
As risk appetite among investors returned, safe-haven assets showed signs of easing. The Japanese yen weakened, and US Treasury yields initially increased, indicating reduced demand for protective investments. Some of those trends later softened as Federal Reserve officials reaffirmed a cautious stance regarding rapid rate cuts, prompting bond traders to reevaluate expected monetary policy changes for December.
For cryptocurrencies, the clearer regulatory landscape appears promising. Riya Sehgal, a research analyst at Delta Exchange, noted that renewed investor optimism in major tech stocks, particularly NVIDIA’s notable 5.8% rise, has spilled over into digital assets. She pointed out that recent actions to clarify regulatory authority over digital commodities could also contribute to upward momentum in crypto markets. Bitcoin’s proximity to breaking through the $107,000 resistance level could forecast a broader uptrend among major digital currencies.
Gracy Chen, CEO of Bitget, echoed these sentiments, describing the Senate’s funding agreement as a pivotal development toward economic stability. She remarked that defining the CFTC’s authority over cryptocurrencies marks a significant milestone for the sector, offering greater predictability and trust. With macroeconomic pressures subsiding, institutional investors are potentially poised to engage with cryptocurrencies under clearer regulations, which may enhance liquidity and overall market participation as the year draws to a close.
