What to expect from crypto as US government shutdown ends?

The end of the longest government shutdown in U.S. history, which lasted for 43 days, has brought a wave of relief to various sectors, including the crypto market. After a period of political paralysis that affected over 800,000 federal workers and disrupted essential services, both traditional and cryptocurrency markets reacted positively to the news. However, traders are likely to remain cautious as they assess the implications of this political shift.

The end of the government shutdown brings relief to the crypto market

As the U.S. government reopens, experts believe that the conclusion of the shutdown will provide a much-needed boost to the crypto market. While the immediate response has been favorable, uncertainty still looms over the market's future direction. Analysts suggest that although the end of the shutdown is a positive development, traders may approach the market with caution in the coming weeks.

Bitcoin and Ethereum show positive price movements post-shutdown

Following the announcement of the government shutdown's conclusion, Bitcoin (BTC) reached a peak of $106,658 before settling back to around $101,000. Similarly, Ethereum (ETH) briefly surpassed the $3,600 mark, eventually stabilizing at approximately $3,400. The market's reaction indicates a renewed optimism among investors, though the volatility remains a concern.

Experts express cautious optimism about future market developments

Market analysts remain cautious about the long-term impact of the shutdown's end. Lacie Zhang, a Research Analyst at Bitget Wallet, noted that the shutdown compounded existing market challenges, such as a decline in AI trading momentum and negative ETF flows. Despite this, she believes the recent market correction could be beneficial, allowing for a reset of leverage and potentially paving the way for renewed institutional interest in crypto assets.

Bitcoin ETFs see inflows as market sentiment shifts cautiously

As the sentiment improved, Bitcoin ETFs ended their recent trend of negative inflows, reporting an influx of $500 million. Arthur Azizov, the Founder and Investor at B2 Ventures, mentioned that while investors are not overly excited about the end of the shutdown, there is a sense of cautious optimism. He emphasized that the real momentum for the market could emerge once the shutdown is officially resolved and that ETF applications will play a crucial role in this recovery.