Bitcoin remained largely steady Thursday while major stock indices delivered a mixed session across Asia, as financial markets digested the news that U.S. President Donald Trump signed legislation to reopen the federal government, ending the 43-day shutdown—the longest in American history. The move restored federal salaries and resumed critical social programs, bringing relief to millions of workers and recipients of government aid while allowing traders to refocus on the underlying economic backdrop.
The funding package, which had been debated and delayed for weeks, secured full-year appropriations for several key departments through fiscal 2026 while providing temporary agency funding through January. The House of Representatives passed the measure with a vote of 222 to 209 after Senate negotiators reached a compromise, signaling bipartisan support for resolving the stalemate. President Trump’s signature late Wednesday concluded the impasse, ensuring federal employees received overdue pay and allowing key nutrition and food assistance programs, including the Supplemental Nutrition Assistance Program (SNAP), to resume.
Crypto Markets Hold Firm Amid Fiscal Clarity
Cryptocurrency markets showed muted reactions to the government reopening, highlighting the sector’s sensitivity not just to domestic politics but also to broader economic indicators. Bitcoin, the world’s largest cryptocurrency by market capitalization, hovered near $101,839, down roughly 1.5% in Asian trading hours. Ether, the native token of the Ethereum network, inched up by 0.2% to $3,457, while XRP rose 2.8% to $2.47. Overall, the total crypto market cap declined slightly, falling 1.5% to $3.53 trillion.
Analysts note that the fiscal clarity provided by the end of the shutdown removes one source of headline-driven volatility for digital assets. However, cryptocurrency flows and investor sentiment remain more directly tied to interest rate expectations, liquidity conditions, and macroeconomic data. Market participants are now focusing on the resumption of U.S. economic data releases to gauge labor market conditions, inflation trends, and Federal Reserve policy trajectories.
US and Asian Stock Market Dynamics
Across Asia, stock performance was broadly mixed but generally positive, reflecting cautious optimism. Japan’s Nikkei 225 climbed 0.5%, while the Topix index rose nearly 1% to reach record levels, as investors rotated out of high-valuation artificial intelligence (AI) and technology names and spread exposure to broader sectors of the economy. Hong Kong’s Hang Seng Index retreated slightly from a one-month peak, while China’s Shanghai Composite managed modest gains of 0.1%.
Wall Street’s overnight session mirrored this selective enthusiasm. The Dow Jones Industrial Average hit a new record, reflecting strong performance in cyclical and industrial sectors, whereas the Nasdaq Composite declined modestly amid profit-taking in high-multiple technology and growth stocks. European equities continued their upward trajectory, with London’s FTSE 100 reaching a record high, the pan-European STOXX 600 lifted by bank gains, and Italy’s FTSE MIB marking its highest level in nearly 25 years.
Investors have largely interpreted the end of the U.S. shutdown as a signal that fiscal and regulatory operations can resume, but markets remain cautious, awaiting concrete evidence from upcoming economic releases to validate expectations of a gradual easing in labor market pressures.
Treasuries Gold and Safe-Haven Assets
Safe-haven demand eased slightly after the reopening, reflecting a lower perceived risk in the short term. The U.S. 10-year Treasury yield stabilized near 4.07% after an earlier surge in bond purchases moderated, indicating that investors were balancing renewed fiscal certainty with lingering macroeconomic uncertainties. Gold, which saw a nearly 3% jump overnight amid shutdown-induced concerns, remained firm above $4,200 in Asian hours, supported by ongoing geopolitical tensions and cautious investor positioning.
The market’s nuanced reaction underscores the complexity of current financial conditions. While the fiscal restart reduces headline-driven uncertainty, structural concerns around interest rates, inflation, and growth continue to influence asset allocation decisions across equities, fixed income, and alternative assets like cryptocurrencies.
Energy Market Reaction
Energy markets reacted with mild caution, as Brent crude futures slipped to a three-week low of approximately $62.48 per barrel. Analysts attributed the decline to OPEC’s recent outlook, which anticipates a slight oil surplus in 2026, tempering earlier bullish sentiment predicated on constrained supply expectations. While short-term price movements remain influenced by geopolitical tensions and weather-related disruptions, medium-term supply-demand dynamics appear more balanced, creating headwinds for speculative rallies.
Regulatory Oversight Resumes
Beyond market sentiment, the end of the shutdown has important implications for regulatory operations. U.S. federal agencies, which had scaled back oversight activities during the 43-day funding lapse, are expected to resume normal operations. This includes the Securities and Exchange Commission (SEC) and other financial regulators, whose actions are critical for digital-asset oversight, ETF approvals, and broader enforcement activity.
For cryptocurrency markets, regulatory clarity is a key variable, as pending ETF applications, enforcement decisions, and policy statements can materially influence both retail and institutional participation. The resumption of regulatory reviews is expected to provide more predictable timelines and reduce the uncertainty premium that has weighed on high-beta assets in recent months.
Looking Ahead Economic Data and Rate Expectations
Economists and market strategists are now turning their attention to upcoming U.S. economic data, which were delayed during the shutdown. Reports on employment, wage growth, and consumer spending will be critical for confirming whether recent surveys indicating softening labor conditions are accurate. These data points are expected to influence Federal Reserve policy deliberations, shaping investor expectations for interest rates, liquidity conditions, and asset valuations.
Any unexpected deviation in economic indicators could trigger rapid repricing in high-volatility assets, including growth equities and cryptocurrencies, while also affecting safe-haven allocations like gold and Treasuries. Analysts anticipate that markets will remain highly sensitive to data-driven signals over the next several weeks, as traders assess the trajectory of growth, inflation, and the central bank’s next moves.
Market Sentiment Cautious Relief
The overarching tone across financial markets is one of cautious relief. The government reopening reduces immediate fiscal and operational risks but does not eliminate structural economic uncertainties. Investors are selectively positioning themselves, balancing optimism for resumed government operations against lingering questions regarding inflation trends, labor market resilience, and global growth dynamics.
In cryptocurrencies, analysts note that while headline risk from government shutdowns has diminished, the broader risk environment remains dynamic. Bitcoin and other major digital assets are likely to remain sensitive to macroeconomic cues, interest rate guidance, and regulatory developments in the coming weeks.
Equities are expected to continue their selective rally, with cyclical sectors benefiting from fiscal clarity and technology and growth stocks remaining under scrutiny for valuation pressures. Safe-haven instruments, including gold and high-quality bonds, may maintain demand in the background as investors navigate an environment of mixed signals and heightened volatility potential.
Conclusion
The signing of the funding bill by President Trump marks a pivotal moment for U.S. fiscal policy and global markets. While the immediate relief for federal employees and program beneficiaries is tangible, the broader implications for investors span multiple asset classes and regions.
Markets are entering a phase where economic fundamentals, rather than political headlines, are likely to dominate sentiment. Traders and portfolio managers are now carefully watching U.S. data releases, central bank commentary, and regulatory actions to guide positioning across equities, fixed income, commodities, and cryptocurrencies.
For now, the tone is one of cautious optimism. The reopening of the government removes a key source of uncertainty, but market participants remain vigilant, parsing every new data point for clues about the trajectory of interest rates, inflation, and global economic momentum. Investors across Asia, Europe, and the U.S. are recalibrating, seeking opportunities amid the balance of fiscal clarity and macroeconomic complexity.
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