The US Government Partial Shutdown wrapped up on February 4, 2026, after Trump put pen to paper on a huge funding package. Bitcoin and crypto markets caught a break, but traders aren’t exactly popping champagne yet.
Lawmakers couldn’t get their act together starting January 31. No spending deal meant political chaos, and markets hated every second of it. The US Government Partial Shutdown is done now, but here’s what everyone wants to know: can crypto actually hold these gains or are we headed back down?
Bitcoin Crawls Back After Shutdown Ends
Bitcoin pushed back toward $76,000 on Tuesday morning in Asia. Prices jumped once the shutdown drama cooled off and some of that political mess cleared out.
BTC got crushed to about $73,100 over the weekend. That’s the worst we’ve seen since Trump won back in 2024. The whole crypto market cap hung around $2.7 trillion after sellers went nuts earlier in the week.
Ethereum got beaten up too. ETH dropped close to $2,200 before buyers showed up. Volume spiked when prices bounced, which tells you short-term players jumped in fast after the political news broke.
US Government Partial Shutdown Crushed Crypto Prices
The US Government Partial Shutdown messed up way more than just federal offices. Markets freaked out when agencies shut down, and economic data got delayed.
Crypto took it on the chin. Weekend trading is already thin, so when sellers started dumping, prices fell hard. Liquidations made everything worse. When Bitcoin drops fast, exchanges automatically close out leveraged positions, and that creates a domino effect.
Data shows over $2 billion in Bitcoin positions got wiped out from Thursday through Saturday. That’s brutal. Once liquidations start, they feed on themselves and drag prices down even faster.
The whole mess started because Congress fought over DHS spending and immigration stuff. No deal meant lights out for government offices. Crypto traders were already jumpy about the economy, so the US Government Partial Shutdown just piled on more stress.
Also Read: GENIUS Act: What You Should Know About the New U.S. Crypto Regulation Bill
Trump’s Signature Changed the Game
Trump signed the spending bill on February 3, officially ending the US Government Partial Shutdown. Most government agencies got funded through September 2026.
But wait, there’s a problem. DHS only got money until February 13. The House barely passed this thing, 217-214. Republicans couldn’t even agree among themselves, which made the vote way closer than it should’ve been.
Markets liked the news at first. The US Government Partial Shutdown ending meant one less thing to worry about. Dip buyers came in and grabbed Bitcoin at lower prices.
Don’t confuse this bounce with a real trend change though. This looks like classic relief buying, not the start of some big rally. We’ve seen wild swings both ways recently, especially when trading gets light.
February 13 Could Bring More Pain
Mark your calendar. February 13 is when DHS funding runs out. If Congress screws up negotiations again, we could be right back where we started with US Government Partial Shutdown fears.
Big economic reports are coming too. Inflation data drops later this month. Jobs numbers hit around February 6. Both of these can shake up what people think the Fed will do with interest rates.
Bitcoin is still way off its recent highs. Charts don’t look healthy yet. The damage from last week’s selloff is still visible, and confidence is shaky at best.
Traders are watching to see if BTC can stay above $75,000. If that level breaks, things could get ugly fast. Options markets show people aren’t betting on any major rally right now.
Also Read: From Signal To Weapon: Prediction Markets In 2026
Where Do Crypto Markets Go From Here?
The US Government Partial Shutdown ending helped calm nerves. Crypto and other risky stuff usually like it when political uncertainty drops. But let’s be real, there are still big questions nobody can answer yet.
Can Bitcoin defend support levels? Will altcoins keep bouncing or roll over? What happens if February 13 turns into another disaster?
Everyone’s watching Washington right now. This US Government Partial Shutdown getting resolved was just the first step. The real challenge comes over the next few weeks when we see new data and find out if Congress can actually fund DHS without another fight.
The shutdown’s done. Bitcoin bounced. Whether crypto can stage a real recovery depends on a whole lot more than one funding bill getting signed.
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Disclaimer:
Look, we’re just journalists reporting the news here, not your financial advisors. Everything you read above is for information purposes only. Crypto is wild, unpredictable, and can absolutely wreck your savings if you’re not careful. Never invest money you can’t afford to lose. Seriously, we mean it. Do your own research, talk to actual licensed financial professionals, and remember that past performance means absolutely nothing when it comes to future results. The crypto market can turn on a dime, and what’s hot today might be toast tomorrow. We’re not responsible for your investment decisions, good or bad. Trade smart, stay safe, and don’t bet the farm on anything you read on the internet, including this article.
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