Bitcoin Price Bounces from Multi-Year Low Following U.S. House Passage of Funding Bill
After a sharp decline earlier on Tuesday, Bitcoin (BTC) showed signs of recovery as the U.S. House of Representatives narrowly passed a government funding package, an action poised to end the partial government shutdown. The bill’s passage, with a close 217-214 vote, brings temporary relief to financial markets amid significant uncertainty.
Government Shutdown Ends, Crypto Market Stabilizes
The recent partial shutdown of the U.S. government created widespread market unease, contributing to a steep plunge in cryptocurrency prices. Bitcoin prices fell dramatically, reaching a low of approximately $72,800—the weakest point since before the November 2024 U.S. presidential election. However, the passage of the funding package, pending President Donald Trump’s signature, halted this panic-driven sell-off.
With the government expected to reopen, the immediate crisis diffused, providing a boost to crypto assets. Bitcoin rebounded to around $74,800 at last check but remained down roughly 4.5% over 24 hours. Ethereum (ETH) also faced notable losses, with a 7% decline over the same period, trading near $2,181. Other leading cryptocurrencies such as XRP and Solana (SOL) mirrored this downward trend.
Stock Market Also Responds to Funding Agreement
U.S. equity markets, which had suffered significant losses earlier in the day due to government uncertainty and risk-off sentiment, experienced a recovery as well. The Nasdaq Composite rebounded from steep declines but remained down approximately 2%, while the S&P 500 lowered by about 1.3%. Investors appear cautiously optimistic but remain vigilant as lawmakers plan further negotiations over the Department of Homeland Security’s funding in coming weeks.
Broader Crypto Sentiment and Perspectives
Despite the short-term stabilization, cryptocurrencies continue to face headwinds. Concerns persist around regulatory scrutiny and macroeconomic conditions. Nevertheless, some prominent figures maintain strong faith in Bitcoin’s value proposition. Mexican billionaire Ricardo Salinas, for instance, reaffirmed his bullish stance on Bitcoin after the recent price drop. Salinas revealed that he holds approximately 70% of his liquid assets in Bitcoin—a substantial increase from 10% in 2020—emphasizing Bitcoin as a hedge against inflation and fiat currency risks.
Looking Ahead
While the immediate threat of a prolonged government shutdown has eased, markets remain sensitive to political developments and fiscal policy decisions. The coming weeks will be crucial as Congress continues DHS funding discussions and investors monitor economic indicators.
Cryptocurrency and stock markets alike stand at a cautious point, balancing relief from recent turmoil with the uncertainty inherent to ongoing political and economic dynamics.
Data as of February 3, 2026, 7:30 p.m. ET.
Co-authored by Stephen Alpher and Nikhilesh De, Edited by Stephen Alpher.