U.S. Government Shutdown Ends, Crypto Markets React
- Shutdown ended, major impact on crypto and markets.
- Government signed bill to end shutdown.
- Crypto recovery observed after increased liquidity.
The U.S. government shutdown ended on November 12, 2025, after President Donald Trump signed the American Continuity Act of 2025, unfreezing federal agencies and impacting market dynamics.
The shutdown’s conclusion significantly influenced financial markets, with a rebound in US Treasury yields causing ripple effects across cryptocurrencies, highlighting vulnerabilities during regulatory downtimes.
The recent U.S. government shutdown, lasting 43 days, concluded on November 12 with President Trump signing the American Continuity Act. During the shutdown, federal agency operations halted, impacting data flow and regulatory processes significantly. You can read more in the full story here.
The shutdown’s resolution led to the reopening of key agencies like the SEC and CFTC, ensuring restored regulatory clarity. The act’s passage was critical after extensive bipartisan discussions in Congress.
Markets reacted swiftly post-shutdown, with U.S. Treasury yields rebounding and cryptocurrencies seeing a reversal in trends. BTC fell by 8% during the event but later recovered. “Flows are rotating toward equities and gold. Add crypto risk only on confirmed closes back above $105,000 with improving spot volume. Use the $100,000 area as your risk line,” commented Vikram Subburaj, CEO of Giottus.
The financial sector anticipated significant monetary inflow as liquidity improved, potentially affecting asset valuations and market dynamics, notably in crypto and equities.
Historically, shutdowns coincide with market rebounds post-resolution. This instance continued the pattern as crypto markets followed equities higher.
Regulators resumed tasks, raising hopes for future ETF approvals and bolstering market confidence. The ongoing legislative process suggests potential regulatory adjustments elevating crypto’s role.
