News of the end of the longest government shutdown in US history brought a positive mood not only to the financial markets but also to the world of cryptocurrencies. Bitcoin strengthened significantly after the budget approval announcement and became the most discussed cryptocurrency on social media.
Senate approves budget
On Monday, the US Senate approved a long-debated budget bill that should secure funding for most government spending until the end of January next year. This paved the way for an end to the longest government shutdown in history. It took Republicans nearly ten hours to reach the necessary number of votes, with eight coming from Democrats. The bill now awaits debate in the House of Representatives and the signature of President Donald Trump.
During the shutdown, more than a million federal employees were left without pay, and a number of key institutions, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), operated on a limited basis. The impact was also felt in air transport, where a shortage of paid air traffic controllers caused flight cancellations and delays across the United States.
Bitcoin strengthens
News of the impending end of the shutdown immediately boosted the markets. The price of Bitcoin, which had fallen to $99,300 on Friday, climbed back to around $105,100. According to the analytical platform Santiment, Bitcoin became the most frequently mentioned cryptocurrency on social media, reflecting the return of positive market sentiment. Analysts also point out that the current optimism could be a sign of a further growth trend that could push Bitcoin up to $150,000.
Another boost for the market was the announcement by Square, founded by Jack Dorsey. The company has enabled more than four million merchants worldwide to accept Bitcoin payments without any fees. This step is considered an important milestone in the adoption of cryptocurrencies and brings Bitcoin closer to everyday use in normal payment transactions.
