The reopening of the government in the US and the bipartisan proposal to regulate cryptocurrencies could mark the beginning of a new era in the crypto markets.
“The US Senate’s decision to end the government shutdown is a critical step in restoring economic stability,” Gracie Chen, CEO of crypto exchange Bitget, said in a statement.
Technobit CEO Alexander Peresichan noted that the lockdown created uncertainty in the crypto market and caused investors to exit risky assets. According to Peresichan, “The closure of public institutions, delayed macroeconomic data releases, and weakened confidence in US financial stability led to increased volatility and investors turning to safer instruments like the dollar, gold, and Treasury bonds. During this period, liquidity in the crypto market decreased, and the prices of many major cryptocurrencies, including Bitcoin, temporarily declined due to investor caution.”
According to experts, the end of political uncertainty could boost institutional investor confidence and re-inject significant liquidity into the market. Bitget CEO Chen said, “As macroeconomic uncertainty eases, institutional confidence will strengthen, and we will see a significant capital inflow from traditional financial participants. This could propel the market into an upward trend towards the end of the year, increasing trading volumes, price stability, and overall market activity.”
In addition to the government reopening, a bipartisan bill in the US Senate aimed at establishing a clear framework for the cryptocurrency market is reportedly having a positive impact. The bill would transfer oversight of spot trading of non-securities cryptocurrencies to the Commodity Futures Trading Commission (CFTC), while investment-grade digital assets would remain under the SEC’s supervision. This aims to resolve jurisdictional confusion between the two institutions and create a more transparent regulatory environment for both exchanges and investors.
Chen argued that all these developments “herald a more predictable and reliable digital asset market that supports innovation without stifling growth.”
*This is not investment advice.