Investor optimism rises amid U.S. government reopening hopes and potential Fed liquidity boost
Bitcoin (BTC-USD) surged past the $105,000 mark on Monday, leading a rally across the cryptocurrency market as investors embraced risk assets. The rebound came amid growing confidence that Washington is nearing a deal to end the government shutdown, a development expected to unleash renewed fiscal spending and market liquidity.
President Trump’s recent remarks about a possible “dividend of at least $2,000” per person funded by tariff revenues further fueled optimism, lifting growth sentiment across equities. The S&P 500 and Nasdaq Composite both advanced, with tech stocks leading gains.
Bitcoin climbed more than 2% after recovering from last week’s six-month low near $100,000. Altcoins followed suit — Ripple (XRP-USD) jumped 10%, and Solana (SOL-USD) gained 3%. Analysts attributed the rally to expectations that government reopening and increased spending would inject liquidity into the economy, supporting digital assets.
“The combination of fiscal stimulus and potential monetary easing creates a powerful tailwind for Bitcoin,” noted 10X Research, adding that a Federal Reserve rate cut in December or balance-sheet expansion would be “unequivocally bullish” for crypto markets. New York Fed President John Williams recently signaled that renewed bond purchases could soon be necessary to stabilize financial conditions.
However, analysts cautioned that the current rebound might be temporary unless the Fed delivers substantial liquidity support. Bitcoin had fallen sharply in October, slipping from a record high above $126,000 amid leveraged unwinding and profit-taking by long-term holders.
Still, JPMorgan’s Nikolaos Panigirtzoglou said the deleveraging phase “is largely behind us” and forecasted “significant upside for Bitcoin over the next 6–12 months,” with potential to reach as high as $170,000.
If fiscal expansion and monetary easing converge, Bitcoin’s resurgence could mark the beginning of a renewed crypto bull market.
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