Cryptocurrencies steadied on Monday as optimism grew that the U.S. government shutdown could soon end, potentially releasing $150–$200 billion in liquidity into financial markets, according to Arca’s head of research.
Bitcoin (BTC) dipped 1.5% to around $102,756 at the U.S. market open but rebounded to trade near $106,000 by late afternoon. Ether (ETH) slipped 0.5% to just under $3,600, while Solana (SOL) climbed 1.1% to $167.
Among altcoins, XRP led gains, surging 9% amid expectations for a U.S. spot-based ETF. In contrast, Zcash (ZEC, $455) and Monero (XMR, $386) pulled back 9% and 11%, respectively, after strong recent rallies.
Crypto equities also recovered, with Coinbase (COIN) rising 4.1%, Robinhood (HOOD) up 4.8%, eToro (ETOR) gaining 9%, and Gemini (GEMI) climbing 5.2%. Traditional markets followed the positive sentiment, with the S&P 500 up 1.6% and the Nasdaq advancing 2.2%.
Market optimism was boosted by former President Donald Trump’s Sunday post proposing a $2,000 “tariff dividend” for Americans. Polymarket data shows traders now assign an 86% probability that the shutdown could end between November 12–15.
Policy Uncertainty Remains
David Nage, head of research at Arca, cautioned that while a shutdown resolution could inject liquidity, the ongoing closure is delaying crucial crypto legislation, including the CLARITY Act and the Senate’s digital asset market structure bill.
“If key digital asset legislation is delayed until 2026 and fails amid midterm politics, the industry could miss the regulatory clarity needed to attract institutional capital and achieve sustainable growth,” Nage said.
He added that although the shutdown’s impact has been less visible than recent market volatility, it may have a longer-term effect on crypto adoption. “Committee offices remain empty, and regulatory progress is on hold,” he noted.
Nage concluded that timing will be critical: “If the shutdown ends this month, markets may benefit from both a liquidity boost and a legislative window. If it extends into December, that opportunity could be lost.”
