After 40 long days of economic uncertainty, the U.S. government shutdown, the longest in the nation’s history, has finally come to an end. The Senate voted 60-40 to move forward with a bipartisan deal, and final approval is expected within days.
This breakthrough could quickly lift market confidence, restart frozen government operations, and restore investor optimism.
During the shutdown, the U.S. economy lost nearly $85 billion, government data releases were halted, and around 1.6 million federal employees went without pay. That long freeze is finally over.
Salaries are expected to be paid this Friday, and critical reports from agencies like the Bureau of Labor Statistics will return, helping both markets and policymakers make informed decisions again.
More importantly, this resolution restores coordination between fiscal and monetary policy, a key step toward steady economic recovery and smoother market performance.
Markets are already reacting to the news. Bitcoin, trading around $106,000, had priced in political gridlock and uncertain inflation data. Now, with the shutdown ending and the CPI expected to come in below 3.1%, investors are preparing for what analysts call a “dual catalyst,” political stability and cooling inflation.
Crypto analyst Shanaka Anslem Perera believes this could trigger a wave of liquidity across markets, driving Bitcoin toward $112,000 and lifting the S&P 500 by about 2%. Gold and M2 money supply growth may further add strength to this momentum.
Even with some recent ETF outflows, institutional demand for Bitcoin remains strong. Earlier this month, global crypto ETFs recorded inflows of nearly $6 billion, signaling growing confidence in digital assets.
With fiscal operations back online and economic data returning, analysts see this as a turning point, a move “from gridlock to ignition.” If inflation cools as expected, liquidity could flood back into risk assets.
In short, the next 72 hours could mark the start of a powerful new rally for both crypto and stocks.
