Key takeaways
Why is Bitcoin rising again?
Optimism returned after the US Senate agreed to end the 40-day shutdown. Trump Media’s $1.3 billion Bitcoin move also helped.
What could spark the next major rally?
A proposed $2,000 “tariff dividend” stimulus could push liquidity into crypto markets.
After weeks of uncertainty, optimism has returned to the cryptocurrency markets.
The US Senate has reportedly reached a deal to end the record 40-day government shutdown. Meanwhile, Trump Media’s $1.3 billion Bitcoin (BTC) bet and plans to invest up to $1 billion in Cronos (CRO) have added to the narrative.
Bitcoin is on the rise again, but can this momentum continue?
Will the government shutdown end?
Reports from Politico show that the US Senate has reached agreement on a three-part budget deal to end the record 40-day government shutdown. This will bring much-needed relief to the crypto markets.
The bill reportedly received enough support to pass the 60-vote threshold, so the political impasse could finally ease. Market sentiment came under pressure due to the prolonged shutdown and uncertainty surrounding US fiscal policy.
Bitcoin, which briefly soared to $126,000 earlier in October, has since retreated to around $106,000. If the shutdown officially ends, traders hope it could increase confidence in digital assets.
Adding to this optimism, President Trump is reportedly considering a “tariff dividend” plan that would distribute $2,000 per person. This represents an injection of approximately $600 billion into the economy.
Unlike the 2020 stimulus measures, current infrastructure could channel liquidity into digital assets much faster. It could be a larger gathering if the proposal moves forward.
Trump Media Reports Third Quarter Losses
Source:
They revealed plans to expand their Bitcoin treasury and invest up to $1 billion in Cronos (CRO) through a new digital asset strategy. Despite the drop in revenue, the company said it generated $15.3 million in realized revenue from Bitcoin options and $33 million in unrealized gains from Cronos.
CEO Devin Nunes called the quarter “crucial” for expansion, implying that Trump Media is preparing to become a long-term player in the crypto treasury space.
He added,
“…We are well positioned to execute on our M&A strategy by acquiring one or more of the flagship assets we are currently evaluating, with an eye on those that will bring the greatest long-term value to our shareholders.
BTC holds at $106,000
On the hourly chart, BTC held above $106,000 after the previous bounce. However, the momentum had started to fade.
The RSI was firmly in overbought territory; buyers may be exhausted after the short squeeze rally. Meanwhile, the CMF remained positive, showing that capital is still flowing in… just at a slower pace than at the start of the session.
Source: TradingView
If flows continue to moderate, traders could start to make profits. For now, the structure remains bullish, but the next leg higher will likely need new volume to break through convincingly.
