Crypto Market Gains Momentum as Washington Advances Funding Bill
- Crypto market gains momentum as Washington’s funding bill progress sparks optimism for economic growth.
- Senate advances funding bill 60–40; essential areas like Agriculture and Veterans Affairs are funded, boosting crypto confidence.
- Analysts from Bull Theory highlight $953B expected to boost economic activity and financial markets.
The U.S. government has been shut down for 41 days, and frustration is rising. Many federal employees have not been paid yet, airport lines are increasing, and significant public services have been stalled. The prolonged standoff is now causing problems for the economy.
However, for the first time in several weeks, there is a ray of hope. Finally, Washington has acted decisively to open up the government. The U.S. Senate voted 60-40 in favor of a new funding measure.
Although this is not the final vote, this is a significant step towards progress. They have agreed to push for voting on this bill but have adjourned until Monday at 11 a.m., which means that for one more day, the government remains closed. Despite this, it is clear that both parties are now ready to see where their commonalities lie.
Government Funding Bill Advances Quickly
If approved, it would fully fund essential areas such as Agriculture and Veterans Affairs for the year. The remainder of the government would then be funded until January 30, 2026, giving Congress time for a long-term agreement.
The next step will be in the House of Representatives. House Speaker Mike Johnson is reportedly going to put this bill up for a vote by Wednesday if the Senate completes its work on time. Once both chambers agree on this solution, then normal operations can resume.
Democrats Advance Bill ACA Uncertain
The Democrats agreed to proceed with processing the bill after gaining two important commitments from the Trump administration. First, all federal employees who lost their jobs due to this shutdown will be rehired. These individuals will be paid their full salaries.
The Trump administration has committed to voting on expiring ACA tax credits in December. Families risked higher insurance costs if this did not happen.
However, this bill only ensures a vote, not a result, which is not satisfying for all Democrats. Some Democrats, such as Senator Elizabeth Warren, claim that Democrats can and should have fought for a guarantee for the extension of the ACA in this bill.
Analyst Adam Cochran highlighted that several senior Democrats have “caved without gaining anything significant. They might see healthcare prices rise if there is no final deal made.”
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US Government Reopening Boosts Economy Crypto
Analysts from Bull Theory are following this situation closely because reopening the government would have significant economic repercussions. After operations resume, nearly $953 billion in Treasury funds are expected to re-enter the economy, which would boost economic activity.
Given that the Fed is signaling that it will stop tightening monetary policy by December, such a scenario would inject a further boost into financial markets.
Meanwhile, the crypto market might see renewed developments on long-standing regulatory issues with the reopening.
The SEC would be able to revisit work on various altcoin ETF approvals, and several crypto-positive bills might see long-overdue progress. Government spending usually leads to market optimism, which can be beneficial for a crypto market that is about to see a reversal in market trends.
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