The new week opens on a positive note for digital assets, with the cryptocurrency market rebounding after last week’s declines. Bitcoin rose more than 4.5% in the past 24 hours, climbing above 106,000 dollars and recovering most of the losses recorded during the previous week.
Gains were broad across the market, with Ethereum and Solana each advancing around 7%, while XRP jumped 12%, leading major altcoins. BNB showed a smaller increase of about 1.5%, though it continues to trade above the 1,000 dollar mark.
The global crypto market capitalization increased by nearly 5% to around 3.6 trillion dollars, supported by improved risk sentiment and short covering after several weeks of pressure. The recovery followed a weekend of optimism that the U.S. government shutdown, the longest in history, may finally be ending, restoring confidence across financial markets.
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Sentiment
Market sentiment remains cautious but is showing signs of improvement. The Fear and Greed Index rose slightly to 29, moving out of the “extreme fear” zone after staying below 30 for most of the past week.
The CoinMarketCap equivalent also reads 29, consistent with a market that is still nervous but gradually stabilizing. Analysts note that while the latest rebound has eased immediate downside pressure, sentiment remains fragile, and traders continue to monitor developments in Washington closely.
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Policy And Macro Backdrop
The U.S. government shutdown appears to be nearing resolution after 40 days, following a Senate procedural vote late Sunday that advanced a bipartisan bill to reopen federal operations. The move lifted investor confidence across global markets, with expectations that the deal could be finalized within days. Once enacted, it will fund government operations until January 30, 2026, allowing delayed data releases such as the CPI and jobs reports to resume.
Analysts estimate that the shutdown cost the U.S. economy roughly 85 billion dollars in lost output, with over 1.6 million federal employees set to receive back pay once the bill is signed. The reopening is expected to ease uncertainty, improve liquidity, and help restore coordination between fiscal and monetary policy.
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Traditional Markets
Global markets reacted positively to the progress in Washington. U.S. stock futures rose, with S&P 500 contracts up 0.9%, Nasdaq 100 up 1.5%, and Dow Jones futures advancing 0.4%. Tech stocks led gains after last week’s sell-off, while investors turned attention to the upcoming inflation data and the Federal Reserve’s December meeting, which may bring another rate cut.
In Asia, equities also advanced, with South Korea’s Kospi up 3%, Japan’s Nikkei 225 gaining 1.3%, and Hong Kong’s Hang Seng rising 1.5%. European markets followed the same direction, with the Stoxx 600 up 1% in early trading. Gold traded near 4,050 dollars per ounce, while the U.S. dollar weakened slightly against major currencies.
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Outlook
The near-term crypto outlook has improved following the shutdown progress and signs of renewed liquidity in risk assets. However, market participants remain cautious, with sentiment still anchored in fear and trading activity concentrated around major technical levels.
If the U.S. government officially reopens this week and inflation data confirms a cooling trend, analysts expect Bitcoin could test the 110,000 to 112,000 dollar range, while broader crypto sentiment may shift further toward neutral.
