Bitcoin Price Recovers After US Government Shutdown Ends
Bitcoin (BTC) price rose above $106,000 on Monday. This followed a rebound from a key support level last week. The rise came as the US Senate voted to end the longest government shutdown in history. This boosted risk appetite in financial markets. However, institutional investor confidence remains low. US-listed spot Bitcoin ETFs saw $1.22 billion in outflows last week. This shows some investors remain cautious despite the overall market recovery.
US Senate Agreement Supports Market Rally
On Sunday night, the US Senate approved a plan to reopen the government. The deal funds the government until the end of January and reverses shutdown layoffs. Eight Democrats crossed party lines to support this compromise. It also guarantees back pay for furloughed workers. The plan includes a Democratic concession on healthcare tax credits, which were a key issue.
Financial markets reacted positively on Monday. US government bonds fell as investors bought riskier assets. The yield on 10-year US Treasuries rose slightly to 4.14%. US Treasury Secretary Scott Bessent said President Trump’s suggested $2,000 tariff “dividend” may come through tax cuts passed earlier this year. This could boost consumer spending and add liquidity to markets, benefiting crypto adoption.
Institutional Demand Weak Despite Bitcoin Price Bounce
Institutional demand for Bitcoin is showing weakness. Data from SoSoValue shows spot Bitcoin ETFs had $1.22 billion in outflows by November 7. This is the second straight week of outflows. Continued outflows could deepen Bitcoin’s price correction and indicate falling institutional confidence.
Bitcoin found strong support near the 50% Fibonacci retracement level at $100,353 on November 4. It retested this level over several days before rebounding 2.36% on Sunday. On Monday, BTC extended its recovery, trading near $106,000. If Bitcoin closes above the 61.8% Fibonacci level at $106,453, the price might rise toward the 50-day moving average at $110,241.
The daily Relative Strength Index (RSI) is 45 and rising towards the neutral 50 mark. This suggests bearish momentum is fading but needs to go above 50 for a strong recovery. The MACD indicator also shows early signs of weakening bearish pressure. However, if Bitcoin drops, support at $100,353 may hold as a key level.
