Bitcoin Rebounds Past $106,000 as Senate Deal Eases Market Jitters
Crypto-exposed stocks like MicroStrategy see renewed interest after a brutal week, as optimism over a US government funding deal lifts digital assets.
Bitcoin surged past the $106,000 mark in Monday trading, leading a broad rally across the digital asset market as signs of a potential breakthrough in U.S. government funding negotiations eased macroeconomic fears that have recently weighed on the sector.
The world’s largest cryptocurrency climbed approximately 4.8% over the past 24 hours to trade around $106,300, helping lift the total cryptocurrency market capitalization by nearly 5% to $3.58 trillion. The move provided a much-needed tailwind for crypto-exposed equities, which were hit hard by a sell-off just last week.
The renewed optimism is closely tied to developments in Washington, where the Senate successfully advanced a procedural vote over the weekend on a bipartisan deal to avert a prolonged government shutdown. The political gridlock had contributed to significant market uncertainty, pushing investors away from riskier assets. Last week, the Crypto Fear & Greed Index had dipped into "extreme fear" territory as Bitcoin briefly fell below $106,000.
"The market is breathing a sigh of relief as the shutdown risk subsides," said one technology analyst. "For assets like Bitcoin, which are sensitive to liquidity conditions and broad market sentiment, removing a major source of macroeconomic uncertainty is a significant positive catalyst."
Shares of companies with significant Bitcoin holdings or mining operations reacted to the news, albeit with some caution. MicroStrategy (MSTR), the software intelligence firm known for its massive Bitcoin treasury, saw its shares rise 2% to $241.93 in morning trading. The company’s stock often trades as a proxy for Bitcoin itself.
The recovery follows a punishing prior week for the sector. MicroStrategy had fallen 8.5%, while major crypto miners like Riot Platforms (RIOT) and Marathon Digital (MARA) plunged 17.9% and 10.8%, respectively. On Monday, the miners’ recovery was more tentative, with Riot shares down 1.9% and Marathon slipping 0.6%, suggesting investors remain cautious after the recent volatility.
Bitcoin miners, whose profitability is directly linked to the price of the digital currency, are particularly sensitive to these market swings. A sustained price above key technical levels is crucial for their revenue models, especially as energy costs and operational complexity continue to rise.
The latest price action reverses a trend of significant outflows from digital asset investment products, which saw net redemptions of $1.17 billion last week amid hawkish remarks from the Federal Reserve and shutdown-related jitters. As Washington appears to be moving toward fiscal stability, market participants will now turn their attention back to fundamental drivers, including institutional adoption and the evolving regulatory landscape.