Bitcoin surged past the $106,000 mark on Monday after U.S. lawmakers moved closer to finalizing a government funding deal, sparking renewed optimism across global and cryptocurrency markets.
Key Takeaways:
- Bitcoin rallied to $106,200 as investor confidence rose following the Senate’s procedural approval of a government funding bill.
- Technical readings show BTC’s momentum remains strong with RSI near the mid-670s, a sign of sustained buying pressure but still with short-term pullback risks.
- Political progress eased market fears, with traders rotating back into risk assets including crypto and tech stocks.
Bitcoin jumped alongside equities as traders embraced a risk-on tone following the Senate’s nearing shutdown resolution. The world’s largest cryptocurrency peaked its value around $106,200, recovering from a dip below $100,000 late last week. Trading volumes surged on major crypto exchanges such as Binance and Coinbase, indicating a renewed wave of spot buying activity.
At the time of writing (8:00AM UTC), the token is trading at approximately $106,448, reflecting a 4.48% gain over the past 24 hours. CoinGecko’s real-time market statistics show BTC reached intraday highs near $106,455 and intraday lows around $101,546.
Technical charts show the 14-day Relative Strength Index (RSI) hovering around 75, pointing to strong bullish momentum but nearing overbought levels. Analysts warned that a brief consolidation could follow before any attempt to test resistance near $110,000.
The move reflected broader investor optimism rather than new on-chain catalysts, with bitcoin’s rally tied closely to easing macroeconomic fears. Despite the political backdrop, the surge reinforced bitcoin’s growing correlation with traditional risk assets like equities and gold during high-volatility periods.
U.S. Lawmakers Near Shutdown Resolution
The U.S. Senate voted 60–40 to advance a stopgap funding measure on Monday, a move that brings the long-standing government shutdown closer to resolution. The bipartisan decision lifted sentiment across financial markets, reducing the uncertainty that had kept investors on edge for more than a month.
The procedural victory marked the first significant step toward restoring federal operations, though the bill still requires full Senate and House approval before President Biden’s signature can make it law. Lawmakers from both parties indicated the urgency of passing the measure to avoid further economic fallout, with Sen. Jeanne Shaheen calling it “the only deal on the table.”
Analyst See Macro Relief as Bullsih Signal
Market analysts noted that progress in Washington could stabilize the broader financial environment, which is a factor the typically benefits crypto markets. A digital asset strategist from Glassnode highlighted the positive effect to the broader crypto market when government uncertainty subsides.
Reduced government uncertainty tends to unlock sidelined capital… Bitcoin is still seen as a high-beta asset that thrives when macro fear subsides.
Institutional sentiment has also improved in recent weeks, with major funds reportedly increasing allocations in crypto investment products. Data from CoinShares showed that inflows into digital asset funds have remained positive for four consecutive weeks, reflecting confidence in the broader market’s resilience.
What’s Next?
If the government funding bill passes both chambers without delay, traders expect bitcoin to hold above the $105,000 support zone and potentially target $110,000–$112,000 in the near term. However, if negotiations stall or the bill faces opposition in the House, a short-term correction toward $102,000 remains possible.
Despite overbought technicals, bitcoin’s structure remains bullish, supported by consistent institutional demand and favorable liquidity conditions. For long-term crypto portfolio holders, analysts view this phase as a consolidation period before another leg higher heading into year-end.
Summary
Bitcoin surged above $106,000 as Senate progress on a U.S. funding bill reduced political uncertainty, fueling spot buying and boosting BTC toward near-term resistance while technicals suggest possible consolidation.
