Crypto Rebounds as Washington Nears Shutdown Deal

After weeks of political and market turbulence, the crypto landscape is showing early signs of stabilization. A potential US Senate deal to end the record 40-day government shutdown and President Trump’s proposed $2,000 “tariff dividend” have injected fresh optimism into risk assets, even as traders remain cautious amid ongoing macro and policy uncertainty. Meanwhile, Bitcoin continues to face short-term technical headwinds following a 15% correction from its October peak, while Ethereum’s record-low gas fees and Solana’s call for quantum readiness highlight deeper structural shifts within the blockchain ecosystem. Overall, the market appears poised for a potential rebound — but with volatility and regulatory crosswinds still in play, sentiment remains fragile.

Crypto Eyes Rebound as US Senate Nears Deal to End Shutdown

Crypto markets may soon find relief, according to reports that the US Senate has reached a bipartisan agreement on a multi-part budget bill to end the 40-day government shutdown. The deal is said to have enough support to pass the Senate, though a final vote is still pending. The prolonged shutdown has weighed on investor sentiment, with Bitcoin down more than 15% from its early October high. Political uncertainty and renewed trade tensions, including the announcement of 100% tariffs on China, have also added pressure to the broader crypto market.

Trump’s $2,000 Tariff Dividend Sparks Crypto Optimism

US President Donald Trump announced plans to distribute a $2,000 “tariff dividend” to most Americans, presenting it as a benefit from his tariff policies. The proposed payments, however, hinge on a Supreme Court ruling over the legality of the tariffs, with analysts giving low odds of approval. Investors initially viewed the move as a short-term boost for crypto and other risk assets, seeing it as a form of economic stimulus. However, analysts cautioned that such measures could stoke inflation and add to national debt over time, ultimately eroding the value of fiat currency.

Technical Analysis

Since reaching a peak of $126,134.65 on October 6, BTCUSD has undergone a notable correction, sliding roughly 15% from its recent high. The initial weakness was signaled by a Shooting Star followed by a Bearish Engulfing pattern, later confirmed by a “Death Cross” as the 20-period EMA crossed below the 50-period EMA — a technically bearish setup that often precedes extended downside moves.

The pair continues to trade beneath both moving averages, maintaining a short- to medium-term bearish outlook. Momentum indicators reinforce this stance, with the Momentum Oscillator remaining below its 100 baseline and the RSI still capped under 50, reflecting sustained selling pressure. That said, a bullish divergence between price and the Momentum Oscillator suggests the potential for a short-term rebound.

Should selling persist, immediate support is anticipated near $98,876.21, followed by $95,452.53 and $88,658.18. On the upside, a recovery could face resistance around $108,541.95, $116,321.22, and the previous high at $126,164.35.

Solana Founder Warns: Bitcoin Must Go Quantum-Safe by 2030

Solana’s founder has warned that Bitcoin must upgrade its cryptographic security by 2030 to prepare for the rise of quantum computing. Speaking at the All-In Summit 2025, he cautioned that quantum computers could eventually break Bitcoin’s current encryption, allowing hackers to forge transactions or steal funds. Yakovenko urged developers to begin transitioning toward quantum-resistant cryptography through a hard fork. While some in the crypto community share his concern, others argue the threat remains distant, highlighting an ongoing tension between innovation and maintaining Bitcoin’s stability.

Ethereum Fees Collapse to Record Lows, Raising Network Concerns

Ethereum’s transaction fees have dropped to just 0.067 Gwei — one of the lowest levels ever — as trading activity slows after October’s market crash. This means users can now make transactions for just a few cents, which is great for traders but worrying for the network itself. Experts say the drop in fees shows that fewer people are using Ethereum’s main blockchain, which has already seen its income fall sharply since 2024. While Ethereum’s newer layer-2 networks make it faster and cheaper to use, they’re also taking business away from the main network, raising concerns about its long-term growth and security.

Crypto Surges as US Shutdown Deal Sparks Market Rebound

Bitcoin, Ethereum, and XRP rallied as reports indicated the US Senate reached an agreement to end the record 40-day government shutdown. Bitcoin climbed above $106,000 for the first time in nearly a week, gaining over 4%, while Ethereum surged more than 7% past $3,600. XRP and Solana also advanced around 6% each. The prolonged shutdown had weighed heavily on sentiment, pushing Bitcoin below $100,000 several times in recent weeks. Despite the rebound, Bitcoin remains over 15% below its early October peak above $126,000, with crypto stocks and ETFs still seeing notable outflows amid broader market uncertainty.

Conclusion

In summary, while recent political developments and renewed optimism have sparked a short-term rebound across major cryptocurrencies, underlying challenges remain. Bitcoin’s technical setup still signals caution, Ethereum’s falling network fees highlight structural pressures, and debates around quantum security reflect growing concerns about the future of blockchain resilience. The broader market appears to be stabilizing, but with inflation risks, policy uncertainty, and shifting fundamentals, any recovery is likely to be gradual and closely tied to macroeconomic sentiment in the weeks ahead.