- Bitcoin surpassed US$105k with a 0.7% daily gain, indicating a cautious market recovery across major cryptocurrencies.
- The market rebound is partly attributed to the US Government shutdown’s resolution and proposed tax relief, though analysts question whether this relief will be sustained long-term.
- Some analysts predict Bitcoin could rally to US$150k by year-end, citing growing adoption including Square’s zero-fee Bitcoin payment integration for millions of merchants.
The crypto market has shown a bit of recovery, with most coins making moderate gains. Bitcoin (BTC) has climbed back above US$105k (AU$161k), currently trading at US$105,454 (AU$161,720) – an increase of 0.7% over the past 24 hours, though still down 5% on the monthly chart.
Ethereum (ETH) is trading at US$3,558 (AU$5,455), down just 1.6% over the past day. XRP has gained 1.2% in the same period, mainly off the back of some good news about exchange-traded funds (ETFs).
At first glance, the overall market recovery seems largely driven by the end of the US government shutdown and the proposed “dividend” for US citizens – though Treasury Secretary Scott Bessent has clarified that this would likely take the form of a tax reduction rather than a direct cash payment.
Analysts at 10X Research noted in a report that, despite the government reopening, “little of substance appears to have been achieved,” calling the situation “political theatre.”
They added that the shutdown had never been the main cause of the initial market crash, and that “any relief rally purely tied to the reopening is likely to be short-lived, with broader macro pressures expected to reassert themselves.”
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Bitcoin Could Rally to $150k, Say Analysts
Meanwhile, analysts at Santiment seem to take a different view, writing on Crypto Twitter that BTC is trending on social media “around the US government shutdown resolution and bullish market sentiment,” and there could be room for further upside.
Analysts predict a rise to $150K by year-end, highlighting Bitcoin’s role as a store of value and symbol of digital trust. Additionally, Bitcoin adoption is growing with over 4 million Square merchants now able to accept Bitcoin payments with zero fees, marking a milestone in mainstream payment integration.
SantimentJack Dorsey, co-founder of Block (which owns Square), explained that “sellers can now receive BTC to BTC, BTC to fiat, fiat to BTC, or fiat to fiat.”
This comes as the US Senate Agriculture Committee has just released a draft of its crypto market structure bill. While the proposal still needs significant refinement, it’s viewed as a positive step toward clearer rules for crypto in the US.
Related: Strategy Doubles Down on Bitcoin with $50M Buy Despite Investor Concerns
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