Trump Ends Shutdown: Will the Crypto Market Rise or Fall?

Jakarta, Pintu News – The crypto market showed signs of stabilization in early February after US President Donald Trump signed a funding bill that ended the partial government shutdown.

This decision eases the political uncertainty that had previously pressured risky assets, including cryptocurrencies. Bitcoin (BTC) and major altcoins have started to recover from the sharp selling pressure that occurred over the weekend. However, market participants are still cautious as this recovery is considered more of a technical rally than a solid trend reversal.

Bitcoin rebounds after political pressure eases

After the passage of the funding law, Bitcoin (BTC) moved back to the US$76,000 area or around Rp1.27 billion in Asian session trading. This recovery comes after BTC had plummeted to around US$73,100 or around Rp1.23 billion on February 3, the weakest level since before the 2024 US election. The selling pressure was triggered by a combination of thin weekend liquidity, forced liquidation, and increased risk aversion. With political uncertainty easing, some market participants have started to return to selective buying.

The overall cryptocurrency market capitalization is also showing signs of stabilizing at around US$2.7 trillion. While still far below the previous peak, this stabilization indicates that the major selling pressure is starting to subside. Trading activity increased as prices recovered, indicating short-term traders began to capitalize on the volatility. However, the market is still vulnerable as investor confidence has not fully recovered.

Also read: XRP will be busier? Flare Opens New DeFi Path through Modular Lending

Altcoins are breathing, but the wound is still deep

The recovery is not only happening to Bitcoin (BTC), but also to Ethereum (ETH) and other major altcoins. Ethereum had dropped close to US$2,200 or around Rp36.9 million before returning to moderate strength. Assets such as Ripple (XRP), Solana, and Dogecoin also recorded limited rebounds after heavy selling pressure earlier in the week. These movements reflect the market’s response to the near-term easing of political risks.

Despite this, the prices of the majority of cryptocurrencies are still well below their previous highs. The technical structure of many assets still shows damage from the quick and deep sell-off. High volatility with sharp up-and-down movements means the market has yet to find a clear direction. Under these conditions, rallies tend to be fragile and easily reversed if sentiment deteriorates again.

Read also: MetaMask Opens US Shares in Web3, Ondo (ONDO) Price Ready to Reverse?

Shutdown dampens sentiment, crypto takes a hit

The partial government shutdown began on January 31 after US lawmakers failed to reach a funding agreement, particularly regarding the Department of Homeland Security (DHS) budget and immigration policy. The partial government shutdown impacted several federal agencies and delayed the release of important economic data. This uncertainty increased investor caution towards risky assets. Cryptocurrencies, which often move in the same direction as growth stocks, took a hit during the period.

Trump finally signed a spending package on February 3 that extended government funding until September 2026. However, funding for DHS was only extended until February 13, so the political risk has not completely disappeared. The bill passed by a narrow margin in the House of Representatives after internal divisions in the Republican Party. This means that the potential for continued political tension still looms over the market.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Crypto.news. Will crypto markets recover as Trump signs bill to end partial government shutdown?. Accessed February 5, 2026
• Featured Image: The Block