US funding deal halts crypto price plunge

TLDR

A narrow US funding deal that ended a partial government shutdown stopped a sharp crypto sell-off and triggered a quick but fragile rebound.

1. Congress passed a stopgap funding package that ended a partial shutdown and coincided with Bitcoin bouncing after hitting a 14-month low.
2. The move reduced immediate macro risk, halting panic selling, but crypto remains in a broader drawdown with sentiment in "extreme fear."
3. Next, markets will watch follow-up funding talks, key US data releases, and whether Bitcoin can hold above recent lows or slide into a deeper bear phase.

Deep Dive

1. What Happened To Prices

US lawmakers narrowly approved a roughly 1.2 trillion dollar funding bill in a 217-214 House vote, allowing the government to reopen from a partial shutdown once signed by the president. Reports note that Bitcoin (BTC) had just dropped to about 72,800 dollars, its weakest level since before the November 2024 election, before rebounding toward 74,800 dollars after the funding news, with Ether (ETH) still down around 7 percent on the day and majors like XRP and Solana also in the red. Coverage from outlets like Yahoo Finance and Tokenpost described the deal as having "halted" or "temporarily eased" a panic-driven plunge in crypto prices that was unfolding earlier in the session. A separate CoinDesk piece highlighted BTC touching roughly 72,900 dollars, then jumping about 5 percent above 76,000 dollars after news that a shutdown had been averted.

2. Why Funding Certainty Matters For Crypto

The selling was less about crypto-specific news and more about macro stress. Earlier, the shutdown had already delayed key US economic data such as the jobs report, which increased uncertainty and pushed investors toward cash and short-term government bonds, weighing on BTC, ETH and other risk assets. Analysis from outlets like The Defiant and CryptoPotato frames the funding deal as removing one immediate tail risk, which allowed both the S&P 500 and Bitcoin to rebound together. However, structural pressure remains: Bitcoin is still reported to be down roughly 14 percent over the week and about 17 percent over the month, with a large share of supply now "underwater," and liquidation data shows hundreds of millions of dollars in long positions wiped out during the drop.

3. What To Watch Next

Politically, funding for the Department of Homeland Security is still being negotiated, so another bout of brinkmanship could reintroduce volatility if confidence in US fiscal management weakens again. Macro traders will also focus on the rescheduled economic data releases and how they shape expectations for interest rates and liquidity, which tend to drive risk appetite for assets like BTC and ETH. On the crypto side, key watchpoints are whether Bitcoin holds above the recent low near 73,000 dollars, how derivatives metrics like liquidations and funding evolve, and whether ETF and on-chain flows show fresh accumulation or continued de-risking. With total crypto market cap still down over the last day and the Fear & Greed Index sitting in "extreme fear," the next move will likely hinge on whether macro headlines stay calm or deliver another shock.

Conclusion

The US funding deal removed an immediate shutdown risk and was enough to stop a cascading crypto sell-off and spark a relief bounce, but it did not end the underlying bear pressure. For now, crypto trades as a high-beta macro asset, reacting quickly to shifts in US fiscal and economic clarity, so the path forward depends on both Washingtons next budget steps and how traders respond as delayed data and rate expectations reset.