Today, prior to the opening of the U.S. market, we warned cryptocurrency traders about an important issue. We advised focusing on news regarding the upcoming government shutdown, and indeed, the market reacted accordingly. Those following previous reports are aware that a deal was anticipated, and BTC has exceeded $97,600 again.
Why Are Cryptocurrencies Rising?
What you see on the daily chart is a long lower wick, and it is expected that the daily candle will fill upwards in the coming hours. The news required to reverse the decline has arrived. Government shutdowns have always negatively impacted cryptocurrencies, and today’s conditions were very favorable for news traders.
Those closely following today’s news know that an agreement on the government shutdown is expected to be reached, with tomorrow being the final deadline. The expected event occurred, as House Speaker Johnson stated; “The government will not shut down. An agreement has been made on government funding. The vote on government funding will take place today.”
This was exactly the anticipated news, and significant price regions have begun to recover, especially for altcoins. If the positive sentiment continues, the issues that led to the loss of at least $100,000 should resolve, allowing prices to return to six-figure levels. The markets already knew that the Fed would slow down interest rate cuts for 2025, so any artificial shock decline should not persist for long. Powell’s comments on BTC and potential new statements from Trump will likely neutralize the situation.
Unless there are unexpected developments over the weekend, we can say that cryptocurrencies have entered a much more favorable environment.
