The cryptocurrency market may soon experience a period of much-needed relief following an agreement reached by the US Senate on a three-part budget deal aimed at ending the ongoing government shutdown. This development was reported by Politico.
Pending legislation to fund the US government reportedly possesses more than sufficient support to surpass the required 60-vote threshold for passage, according to Politico's Sunday report, which cited two individuals with knowledge of the matter.
This marks Republican Senate Majority Leader John Thune's 15th attempt to secure Democratic support for a bill that originated in the House, bringing the potential end of the record-breaking 40-day government shutdown within reach.
A formal vote is still necessary to confirm and finalize the agreement.
The persistent uncertainty surrounding the reopening of the US government has been identified as a significant factor hindering Bitcoin (BTC) and the broader cryptocurrency market from initiating a recovery.
Bitcoin initially saw a surge to a new record high of $126,080, six days after the government shutdown commenced on October 6. However, according to data from CoinGecko, the cryptocurrency has since experienced a decline of over 17%, falling to $104,370.
Bitcoin's price depreciation over the past month included a double-digit percentage drop on October 10. This occurred shortly after US President Donald Trump announced 100% tariffs on China, an announcement that sent significant shockwaves across global markets.
Historical Performance: Bitcoin's Surge After Previous Government Shutdown
The last instance of a US government shutdown took place between late December 2018 and late January of the following year, during President Trump's first term.
Following the resolution of that shutdown on January 25, 2019, Bitcoin experienced a significant rally, increasing by more than 265% from $3,550 to $13,000 over the subsequent five months.
Prediction Markets Favor Shutdown Resolution This Week
Participants on the prediction market platform Polymarket are expressing a favorable outlook for the government shutdown to conclude this week. The market currently indicates a 54% probability that the shutdown will be lifted between Tuesday and Friday.
These odds have seen a substantial increase, having stood at just 27% a day prior.
Competitor platform Kalshi presents similar predictions, estimating that the government shutdown will conclude on Friday, marking 44 days of shutdown.
This development comes in the wake of President Trump's announcement on Sunday that a $2,000 dividend from tariff revenue will be distributed to most Americans.
He stated that approximately 85% of adults will be eligible to receive this dividend, with exclusions for high-income earners.