Key Takeaways
Why is Bitcoin Rising Again?
Optimism has returned following the US Senate’s agreement to end the 40-day shutdown. Trump Media’s $1.3 billion Bitcoin push has also helped.
What could spark the next big rally?
A proposed $2,000 “rate dividend” incentive could push liquidity into the crypto markets.
After weeks of uncertainty, optimism has returned to the crypto markets.
The US Senate has reportedly reached a deal to end the record 40-day shutdown. Meanwhile, Trump Media’s $1.3 billion Bitcoin [BTC] bet and plans to invest up to $1 billion in Cronos [CRO] added to the story.
Bitcoin is on the rise again, but can this momentum last?
End of government shutdown?
Reports from Politico show that the US Senate has agreed on a three-part budget deal to end the record forty-day shutdown. This will bring much-needed relief to the crypto markets.
The bill reportedly has enough support to break the 60-vote threshold, finally clearing the political impasse. Market sentiment is under pressure during the prolonged shutdown and the uncertainty surrounding US fiscal policy.
Bitcoin, which briefly rose to $126,000 earlier in October, has since retreated to around $106,000. When the shutdown officially ends, traders hope it can boost confidence in digital assets.
What adds to the optimism is that so is President Trump reportedly roads a “rate dividend” plan that would pay out $2,000 per person. This is roughly a $600 billion injection into the economy.
Unlike the 2020 stimulus, today’s infrastructure could channel liquidity into digital assets much faster. This could be a bigger rally if the proposal moves forward.
Trump media reports losses in the third quarter
Source:
They revealed plans to expand their Bitcoin treasury and invest up to $1 billion in Cronos [CRO] through a new digital asset strategy. Despite declining revenues, the company said it generated $15.3 million in realized revenue from Bitcoin options and $33 million in unrealized gains from Cronos.
CEO Devin Nunes called the quarter “critical” for expansion, implying that Trump Media is preparing to become a long-term player in the crypto-treasury space.
He added:
“…We are well prepared to take action on our M&A strategy by acquiring one or more of the crown jewels we are now evaluating, with an eye to the assets that will deliver the most long-term value to our shareholders.”
BTC remains at $106,000
On the 1-hour chart, BTC remained above $106,000 after the previous rebound. However, the momentum began to plateau.
The RSI was firmly in overbought territory; buyers may become exhausted after the short squeeze-like rally. Meanwhile, CMF remained positive, showing that capital is still flowing in… just at a slower pace than earlier in the session.
Source: TradingView
If inflows continue to moderate, traders may start locking in their profits. It’s still a bullish structure for now, but the next leg higher will likely need new volume to break through convincingly.