Bitcoin Price Rebounds from Multi-Year Low Following U.S. House Passage of Funding Bill
In a tense atmosphere marked by sharp price declines, Bitcoin and broader cryptocurrency markets have managed to steady after a critical political development in Washington. On February 3, 2026, the U.S. House of Representatives narrowly passed a government funding package, ending the partial government shutdown and halting a rapid crypto market plunge.
House Funding Bill Passes Narrowly
The House approved the funding package with a razor-thin margin of 217-214 votes, sending the bill to President Donald Trump’s desk for signature. The legislation will reopen the federal government by restoring funding to most major departments, while negotiations continue over the Department of Homeland Security’s budget. With the shutdown lifted, uncertainty that had weighed on financial markets—including cryptocurrencies—has receded.
Cryptocurrency Markets Bounce After Sharp Declines
Earlier on Tuesday, Bitcoin (BTC) fell drastically, reaching lows around $72,800 — its weakest valuation since before Trump’s 2024 election victory. The steep selloff reflected concerns over government gridlock and economic uncertainty. However, following the House passage, Bitcoin rebounded modestly to approximately $74,800 by evening, though still down around 4.5% over the previous 24 hours.
Ethereum (ETH) and other major cryptocurrencies faced similar downward pressure. ETH dipped to about $2,181, marking a 7% decline in a single day and nearly 26% over the past week. Likewise, XRP and Solana (SOL) experienced comparable losses amid the market turmoil.
Stock Markets Also React
U.S. equity markets mirrored crypto’s volatility, with the Nasdaq and S&P 500 rebounding from earlier depths but remaining notably lower. By the close of the day, the Nasdaq was down roughly 2%, while the S&P 500 decreased about 1.3%. The risk-off sentiment highlights the interconnectedness of crypto and traditional assets, especially during periods of political and geopolitical stress.
Broader Market Context
The recent market jitters have also been compounded by escalating geopolitical tensions, notably the conflict involving Iran. These events have caused commodity prices such as oil and gold to surge briefly before retreating, adding layers of complexity to asset price movements.
Industry experts remain watchful as continued negotiations over government funding and international developments unfold. The resolution of the shutdown, although partial, provides some relief to markets long rattled by political impasses.
Looking Ahead
Investors remain cautious, mindful that Bitcoin and other digital assets are prone to wide swings amid macroeconomic and political uncertainties. While the lifting of the government shutdown has alleviated immediate fears, cryptocurrency valuations continue to reflect a fragile sentiment environment.
As President Trump prepares to sign the bill, market participants will be closely monitoring forthcoming legislative developments, especially concerning the Department of Homeland Security and further fiscal policymaking. Meanwhile, crypto and equity markets await clearer signals on economic stability to regain sustained upward momentum.
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Reported by Stephen Alpher and Nikhilesh De, updated February 3, 2026, 7:38 p.m. ET
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