Bitcoin Updates: Bitcoin Rebounds Following Shutdown Deal, Looks Toward Major Regulatory Progress

Bitcoin Remains Above $105K as Investors Monitor Shutdown Resolution and Liquidity Prospects

On Monday, Bitcoin maintained its position above $105,000 while U.S. legislators moved closer to resolving the 40-day government shutdown—a shift that experts believe could inject liquidity into markets and revive interest in cryptocurrencies. The Senate advanced a bipartisan funding measure with a 60-40 vote on Sunday night, with final passage anticipated soon. The shutdown, which halted federal functions and postponed key economic reports, had put pressure on risk assets like digital currencies.

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This breakthrough comes as optimism grows that the Federal Reserve will soon receive updated inflation figures, potentially shaping future monetary policy. According to Shanaka Anslem Perera from Coinpedia, the end of the shutdown combined with an expected decline in consumer price index (CPI) numbers forms a "dual catalyst" for Bitcoin, possibly driving it toward $112,000.

. At the same time, President Donald Trump’s plan to issue $2,000 dividend payments from tariff proceeds has further increased risk appetite, with crypto markets reacting positively to the improved economic outlook .

The extended shutdown had also delayed progress on significant crypto-related legislation, such as the CLARITY Act in the House and the Responsible Financial Innovation Act in the Senate. These proposals, which seek to create a consistent regulatory structure for digital assets, were put on hold as lawmakers focused on reopening the government.

. Senator Cynthia Lummis, a prominent supporter of these bills, had aimed to move the legislation through Senate committees by autumn, but ongoing political disputes have pushed the timeline into 2026 .

Market watchers are now anticipating a return to regulatory progress. The Commodity Futures Trading Commission (CFTC) is expected to greenlight leveraged crypto trading in the U.S. next month, which could draw more institutional investors

. Additionally, with government operations back on track, the approval process for spot crypto ETFs—a long-awaited development for the sector—may accelerate .

Since the shutdown began, Bitcoin’s price has experienced significant swings. It spiked to $126,080 on October 6, then dropped more than 17% to $104,370 amid global tensions and Trump’s announcement of a 100% tariff

. However, a recent 4.4% increase to $106,119 indicates renewed optimism as shutdown concerns diminish . Ether and other altcoins such as and also posted gains, with analysts crediting the rebound to better liquidity and easing macroeconomic worries .

Prediction platforms like Polymarket and Kalshi are showing high odds that the shutdown will conclude this week, with many traders expecting a resolution by Friday

. Attention now turns to whether the Senate agreement will set the stage for broader fiscal reforms and regulatory advancements in 2026.