Crypto markets stayed mostly flat on Nov. 11 as the U.S. Senate advanced a funding resolution, nearing an end to the 40-day government shutdown.
Summary
- Crypto prices today held steady as the U.S. Senate advanced a deal to end the government shutdown.
- Investor sentiment improved slightly, though caution persists, with liquidations and open interest showing minor changes.
- Analysts see the shutdown resolution as a potential catalyst for a short-term recovery.
The total crypto market capitalization slipped 0.4% to $3.6 trillion. Bitcoin traded at $105,349, down 1%, while Ethereum fell 1.5% to $3,564. XRP edged up 1.2% to $2.49, and Solana dropped 1.2% to $165.
Market sentiment remained subdued. The Crypto Fear & Greed Index fell three points to 26, staying in the “Fear” zone. Data from CoinGlass showed total liquidations over the past 24 hours dropped 6% to $339 million, while open interest across crypto markets declined 2% to $145 billion.
The average market relative strength index remains stable at 51 after a few volatile weeks, indicating a balanced market.
How U.S. government shutdown hurt crypto
The extended government shutdown forced most non-essential federal activities to pause, pushing the Treasury’s cash reserves to record highs and draining liquidity from other parts of the market. Because crypto tends to move in step with overall liquidity conditions, it felt the impact more sharply.
Delays in releasing economic data and halts in regulatory decisions added to investor uncertainty, prompting brief waves of selling. The shutdown’s widespread impact also worsened the deleveraging event that occurred in October, causing Bitcoin to drop over 20% from its peak around $126,000.
Why the end could trigger a relief rally
Following the Senate’s vote, awaiting House approval, previously restricted liquidity will be released, allowing government spending to resume. Regulators may also pick up where they left off with pending processes, like potential approvals for exchange-traded products.
Analysts say that active oversight and restored liquidity, especially for high-risk assets like cryptocurrencies, could lead to a relief rally. Investors, however, are still showing cautious optimism.
Prices have steadied after October’s sharp declines, but upcoming economic data and comments from the Federal Reserve could still influence market direction. If risk sentiment keeps improving, many traders expect Bitcoin to make a move toward the $110,000–$115,000 range soon. Ethereum may next move towards $3,800.
