Asia Market Open: Bitcoin and Global Markets Rise as US Shutdown Negotiations Progress

Bitcoin has surged back above $106,000 with the opening of Asian markets on Monday, alongside a rise in regional stocks due to positive developments in negotiations to end the US government shutdown. The Senate has moved forward with a deal to reopen the federal government, which has fostered risk appetite among investors, leading to gains in both equities and cryptocurrencies.

Key Takeaways

Bitcoin climbed to $106,097, marking a 4.4% increase, while other cryptocurrencies like Ether and XRP also saw significant gains.
Positive news from US government shutdown negotiations has boosted market confidence, reflected in higher equity and crypto asset prices.
Recent volatility in the markets is easing as liquidity returns, despite concerns about consumer sentiment and economic impacts due to the shutdown.

Bitcoin

Main Content

Bitcoin rose back above $106,000 when Asia opened on Monday. This increase came as regional stock markets advanced, buoyed by progress in US negotiations to end the prolonged government shutdown.

On Sunday, the Senate advanced a proposal that requires 60 votes to reopen the federal government, sending the bill to the House of Representatives and President Trump for further approval. This agreement provides funding for government operations until January 30, 2026, reinstates some previously fired employees, ensures SNAP benefits through fiscal 2026, and sets a December vote on Affordable Care Act subsidies.

The relief of a potential short-term resolution has increased risk appetite, prompting traders to invest in higher beta assets. Early trading showed Nasdaq futures up by 0.8%, while S&P 500 futures increased by 0.5%, indicating a more robust start for Wall Street.

The cryptocurrency market also mirrored this change in sentiment. After an initial surge, Bitcoin traded at approximately $106,097, representing a 4.4% rise in the past 24 hours.

Market Snapshot

Bitcoin: $106,097, up 4.4%
Ether: $3,636.14, up 7.9%
XRP: $2.44, up 7.8%
Total Crypto Market Cap: $3.66 trillion, up 4.8%

Investors Remain Cautious Amid Market Volatility

In the equities arena, the MSCI’s Asia ex-Japan index rose by 0.5%, while Japan’s Nikkei climbed 0.6%. South Korea’s Kospi gained 2%, and in Europe, the Euro Stoxx 50 and DAX futures both increased by 1.3%.

Bond markets showed signs of reducing safety trades with the US 10-year yield rising to about 4.13% and the two-year yield reaching around 3.59%. The US dollar recovered some losses from the previous week as investors reassessed growth prospects amid a patient Federal Reserve stance.

Inside Washington, the extended shutdown has put pressure on the economy. Federal workers in various sectors, including airports, law enforcement, and the military, have not received paychecks, creating significant challenges for the central bank due to gaps in economic data from limited government reports.

Shutdown Concerns Affect Investor Confidence

Kevin Hassett, an economic advisor at the White House, stated that if the shutdown continues for too long, the fourth-quarter GDP could potentially turn negative. This heightened uncertainty has also been reflected in consumer sentiment, which fell to its lowest level in nearly three and a half years as households consider the economic implications of the shutdown.

For the cryptocurrency market, reaching a deal is critical. The shutdown has diminished liquidity in certain market segments and increased volatility following macroeconomic reports. Establishing a clear fiscal stance reduces risks and supports positions in digital assets that are responsive to growth and risk cycles.

Wall Street Anticipates Shutdown Vote After a Volatile Week for Technology Stocks

Equity investors kept a cautious eye on the volatility from the previous week. Concerns over inflated valuations in AI-related stocks contributed to the Nasdaq Composite experiencing its worst week since the tariff-induced selloff in April, finishing down 3%. The S&P 500 and Dow also fell by 1.6% and 1.2%, respectively, over the week.

Recent comments from Fed representatives hinted at a cautious approach to future interest rate cuts, with labor market data showing signs of softening. Market participants, taking these signals into account along with news of the shutdown, leaned toward a more optimistic start to the week.

As the House considers the Senate’s proposed package and the White House reviews it, investors will closely monitor the timeline. A smooth approval of the plan would help maintain the current relief sentiment, while any delays could trigger renewed volatility in both stock and cryptocurrency markets.