Crypto Markets Rally as U.S. Shutdown Breakthrough Lifts Risk Appetite

Bitcoin surged past US$106,000 (AU$162K) on Monday, buoyed by renewed risk appetite following President Trump’s promise of a US$2,000 (AU$3,063) “dividend” to most Americans and a major breakthrough in Washington that could end the nation’s longest-ever government shutdown. The dual developments have injected optimism into markets long weighed down by fiscal gridlock and tightening liquidity.

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Stimulus Echoes and Market Reaction

The President’s proposed “dividend,” funded by tariff revenues, drew immediate comparisons to pandemic-era stimulus checks, which previously helped spark speculative buying across crypto markets. While Treasury Secretary Scott Bessent clarified that the payments may take the form of tax reductions rather than direct cash transfers, the move has revived debate over the inflationary effects of populist fiscal policies.

On Truth Social, Trump defended his trade tariffs as the foundation of America’s newfound wealth, calling the nation the “richest and most respected in the world.” That rhetoric, combined with the payout pledge, lit a short-term fire under risk assets — especially cryptocurrencies tied to the Trump brand. Tokens like World Liberty Financial (WLF) jumped over 20%, while Official Trump rose above US$9 (AU$13.78).

Bitcoin now trades near US$105K (AU$160K), up roughly 1% daily but still down 8% over two weeks, while Ethereum (ETH) remains steady at around US$3.5K (AU$5.3K). Broader crypto capitalisation climbed back above US$3.6 trillion (AU$5.5 trillion), suggesting that sentiment — not fundamentals — is driving the latest uptick.

Shutdown Breakthrough Fuels Broader Optimism

Adding to the upbeat mood, the U.S. Senate voted to advance amended funding legislation on Sunday, marking the first concrete progress toward ending the 40-day government shutdown. The bill, which extends federal funding until January 30, 2026, passed by a 60–40 margin with bipartisan support — including eight Democratic senators crossing the aisle.

Market strategists quickly noted the psychological relief this provided. Peter Chung, head of research at Presto Research, said the prolonged standoff had “drained liquidity in the overnight funding market,” amplifying volatility in recent weeks. “The removal of this overhang paves the way for risk assets to price in a favorable macro environment — namely, looser monetary policy, conclusion of trade disputes, and likely fiscal pump-priming ahead of the mid-term election next year”, Chung explained.

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