Bitcoin Hits $106K as US Shutdown Hopes Fuel Rally

Bitcoin surges to$106,000 as optimism grows for a resolution to the US government shutdown. Analysis of the rally's drivers and what's next.

Crypto markets were re-energized earlier in the week, marked by a surge in the price of Bitcoin (BTC) that broke above US$106,000 after the United States Senate passed a crucial funding bill as a first step to end the government shutdown or federal government shutdown that has lasted for 40 days.

According to CoinGecko data on Monday (10/11/2025), Bitcoin prices rose about 4% in the last 24 hours, from a low of US$101,500 to a daily peak above US$106,300, before correcting slightly and staying in the US$106,000 range when this article was written.

This increase was accompanied by a 36% jump in daily transaction volume to US$68.5 billion, pushing Bitcoin's market capitalization to US$2.11 trillion. 

With this achievement, Bitcoin is now only about 16% adrift of its all-time high of us$126,000 recorded on October 6, 2025.

Positive movements also occurred in other large crypto assets. Ethereum (ETH) is up 7% to US$3,600, while XRP is up 8%, Solana (SOL) is up 6%, and BNB is up 2% in the last 24 hours.

Popular Meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) rallied, rising 5% and 4% respectively. Overall, the global crypto market capitalization now stands at US$3.6 trillion.

The crypto Fear and Greed Index that measures market sentiment has now experienced a recovery to a score of 29 or Fear, up from the Extreme Fear level a day earlier.

US political support restores market optimism

The news of political progress in the US is the main trigger for global market optimism. 

The government funding bill was approved by the Senate by a vote of 60-40 and is now awaiting approval from the US House of Representatives before being submitted to US President Donald Trump for signature.

Quoting a report by The Block, Head of research Presto Research, Peter Chung, assessed that this political move provided great relief for the market.

“The prolonged U.S. Shutdown had siphoned off liquidity in Daily funding markets and fueled tensions in recent weeks. With this new certainty, risk assets are now beginning to reassess the potential for looser economic policies and the prospect of fiscal stimulus ahead of next year's midterm elections,” Chung said.

The Chief Investment Officer of Kronos Research, Vincent Liu, also mentioned that the combination of reduced macroeconomic uncertainty and increased confidence in the new policy was the main driver of the crypto rally.

"Optimism over the end of the U.S. government shutdown as well as Trump's proposed dividend tariff plan have increased investor risk appetite, strengthening recovery momentum in crypto markets,” Liu said.

Investors watch Fed policy and inflation Data

In addition to encouraging market sentiment, the reopening of the US government is also considered important because it will restore the availability of economic data that was stopped during the shutdown.

According to BTSE COO Jeff May, the availability of this data will help the Federal Reserve (the Fed) have more indicators in determining the direction of the next monetary policy.

“During shutdowns, the Fed tends to wait due to a lack of important economic data. With the reopening of the government, they now have a stronger basis to take steps that can boost economic growth,” May said.

Meanwhile, the director of LVRG Research, Nick Ruck, added that increased liquidity in the US financial market is also the main catalyst for the crypto rally.

“The stagnating U.S. dollar has historically benefited risky assets like cryptocurrencies. Although the shutdown agreement helps reduce uncertainty, the main factor remains the continued inflow of institutional funds,” he said.

Looking ahead, market participants will look forward to final confirmation from the House of Representatives, further details of Trump's$2,000 dividend tariff plan for US citizens, as well as the latest inflation data.

In addition, the direction of ETF fund flows and the degree of Bitcoin dominance will also be important indicators of whether this rally will extend to altcoins or remain centered on the main asset.

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