Asia Morning Briefing: Bitcoin Rebounds as Polymarket Traders Bet U.S. Shutdown Will End Within Days

In recent market developments, Bitcoin and Ethereum experienced notable rebounds as traders reacted to news that U.S. Senate negotiators reached a bipartisan funding agreement. This deal has raised hopes that the government shutdown could soon be resolved, lending a boost to risk assets, including cryptocurrencies.

Prediction markets rebound as Senate negotiators reach a bipartisan funding deal

The mood in prediction markets shifted dramatically after Senate leaders announced a bipartisan funding deal late Sunday. The agreement aims to fund the government through January 30, reversing recent layoffs and ensuring a vote in December on extending tax credits for the Affordable Care Act. As a result, traders on platforms like Polymarket now see increased odds that the government will reopen by November 12, which has positively influenced market sentiment.

Crypto market shows strong reactions to U.S. government shutdown developments

In response to the optimistic news, Bitcoin surged by 4.2%, reaching $106,269, while Ethereum climbed 7.4% to $3,643. This rebound comes after a turbulent week for both cryptocurrencies, as macroeconomic uncertainties had put pressure on prices. With the easing of concerns regarding the shutdown, traders are regaining confidence and liquidity is returning to major cryptocurrencies.

Potential reopening of U.S. government influences crypto sentiment and prices

Despite the positive outlook for a government reopening, some challenges remain for the crypto market. Traders are expressing skepticism about the likelihood of the SEC approving a Cardano ETF before the year's end. Just a month ago, there was a 90% chance of an ADA ETF being approved by 2025, but that figure has now dropped to 38%. Nevertheless, the overall sentiment in equities and crypto markets has improved, signaling relief after weeks of uncertainty.

Long-term crypto outlook remains cautious despite short-term gains

While the immediate future appears brighter for Bitcoin and Ethereum, the long-term outlook remains cautious. The recent fluctuations in the crypto market highlight the ongoing volatility influenced by broader economic conditions. As traders digest the news of the funding deal and its implications, many are looking to the potential impacts on the regulatory landscape and upcoming market events.

In summary, the recent bipartisan agreement has stirred optimism in the crypto market, leading to significant price rebounds for major cryptocurrencies. However, traders remain vigilant about potential regulatory hurdles and ongoing economic uncertainties that could affect market stability in the months to come.