U.S. Government Reopening Eases Market Jitters as Bitcoin and Crypto Prices Remain Under Pressure

The U.S. House of Representatives narrowly approved a critical funding package on Tuesday with a 217–214 vote, paving the way for the federal government to reopen following a partial shutdown. Once President Donald Trump signs the legislation, most major government departments will resume normal operations. However, funding negotiations for the Department of Homeland Security will continue over the next week and a half, keeping some political uncertainty in play.

The vote had an immediate, though limited, impact on financial markets. News of the government reopening helped halt a sharp sell-off in cryptocurrency markets that unfolded earlier in the day. Bitcoin prices plunged amid panic selling, briefly falling to around $72,800, marking their lowest level since before Trump’s election victory in November 2024. This sudden drop rattled investors already on edge due to broader macroeconomic and political concerns.

Despite the short-term relief provided by the funding agreement, the crypto market remains under significant pressure. Bitcoin is currently trading near $74,800, representing a decline of approximately 4.5% over the past 24 hours. Ethereum has performed even worse, falling roughly 7% in the same period and posting losses of about 26% over the past week. Other major cryptocurrencies have mirrored this downward trend, with XRP and Solana also recording notable declines as investor sentiment remains fragile.

Traditional financial markets have shown similar volatility. U.S. stocks rebounded modestly from their worst levels of the session following the House vote, but losses remain substantial. The Nasdaq Composite is still down around 2%, while the S&P 500 is lower by roughly 1.3%, reflecting ongoing concerns about economic stability, government funding, and interest rate expectations.

Overall, while the passage of the funding package has temporarily eased fears of a prolonged government shutdown, both cryptocurrency and stock markets continue to grapple with uncertainty. Investors are closely watching upcoming political negotiations and macroeconomic signals, as these factors are likely to play a key role in determining the near-term direction of Bitcoin, Ethereum, and broader financial markets.