The potential resolution of the administrative closure in the U.S. is generating optimism in the markets. The potential end of the government shutdown, which has lasted 40 days, has reduced “financial uncertainty.” This has sparked a rebound in the institutional accumulation of cryptocurrencies in recent days. The U.S. Senate advanced a procedural vote on Sunday, with a final vote expected on Monday.
Immediately following the news, digital asset markets showed a recovery. The Starknet (STRK) token posted an impressive increase of over 43%, positioning itself as the day’s biggest winner. Furthermore, the World Liberty Financial (WLFI) token followed with a 28% rise in the last 24 hours, according to CoinMarketCap data. The reaction suggests investors were awaiting a signal of macroeconomic stability.
Likewise, Nicolai Sondergaard, a research analyst at Nansen, explained the significance of this event. He stated that the end of the government shutdown is crucial. “For weeks, markets were effectively operating in the dark,” Sondergaard said. Key economic data and regulatory processes were frozen. He added that once the government resumes operations, investors can “price in real fundamentals rather than speculation.”
Is the market preparing for a wave of institutional capital following the political thaw?
Data suggests that institutions are already acting. A restart in Ether (ETH) accumulation by large players has been observed. This is based on growth in spot order data. The intelligence platform CryptoQuant suggests that Ether might be entering a “low-volatility accumulation” period. For this to happen, the price of ETH must remain afloat above the $3,000 to $3,400 range.
However, the broader market recovery will depend on additional factors. The derivatives trading desk at Laser Digital, part of Nomura Group, indicated that inflows into Bitcoin and Ether ETFs will be decisive. The firm’s report highlights that this will determine if the demand is institutional and sustained, rather than just retail or short-term flows.
The end of the government shutdown also has strong implications for the regulatory future. ETF analyst Nate Geraci anticipates this will “open the floodgates” for cryptocurrencies ETFs. Currently, at least 16 crypto ETF applications await approval, many of which were delayed by the closure. Geraci speculated that this could introduce the first spot XRP ETF (from 21Shares) under the Securities Act of 1933, a different regulatory framework than that used for listing the BTC and ETH ETFs.
