Flight in the Crypto Market: Why Are Bitcoin and Altcoins Rising?

Recently, there has been a noticeable rise in the markets. Bitcoin (BTC) and Ethereum (ETH), among many altcoins, have once again captured investors' attention, while the approval of the bill to reopen the government by the U.S. Senate has been an important development supporting this situation.

News of the end of the government shutdown has led to a resurgence of risk appetite in the markets. Bitcoin gained 4.4% in the last 24 hours, surpassing the $106,000 level, while Ethereum broke past the $3,600 mark with a 7.8% increase. A similar rise was observed in other cryptocurrencies; XRP, BNB, and Solana gained between 5-8% in value.

This increase is attributed not only to the reduction of political uncertainty but also to U.S. President Donald Trump's new "tariff dividend" plan. Trump suggested in a statement on Truth Social that at least $2,000 would be paid to every American with revenues from import tariffs. The markets interpreted this as a move that could boost consumer spending and overall risk appetite.

Peter Chung, research director at Presto Research, stated that the prolonged government shutdown had decreased short-term liquidity in the market, but new developments have eliminated this pressure. Chung said, "Combined with looser monetary policies and pre-election fiscal incentives, a favorable environment has emerged for riskier assets."

Vincent Liu, investment director at Kronos Research, commented, "The reduction in macro uncertainty and Trump's economic measures support a recovery in crypto assets. With ETF inflows and increasing liquidity signals, the market is returning to risk-taking." The resumption of the flow of economic data has also been another anticipated development in the markets.

Jeff Mei, COO of BTSE, emphasized that the reopening of the government is significant not only in terms of morale but also regarding the flow of economic data. Analysts predict that the approval process of the Senate agreement, the details of Trump's tariff plan, and inflation data will determine the market's direction. If these moves meet expectations and ETF inflows continue, the current rally may not be limited to Bitcoin and Ethereum; a broad-based increase could also be seen in the altcoin market.