Bitcoin Price Bounces from Multi-Year Low Following U.S. House Passage of Funding Bill
February 3, 2026 – By Stephen Alpher and Nikhilesh De
After a sharp decline, Bitcoin (BTC) prices have rebounded from a multi-year low as the U.S. House of Representatives narrowly approved a critical government funding package, putting an end to the partial government shutdown that had unsettled financial markets and cryptocurrencies alike.
Government Shutdown Ends, Crypto Markets Stabilize
On Tuesday, February 3, 2026, the House passed the funding bill by a slim margin of 217-214 votes. The package now awaits President Donald Trump’s signature, which is expected to reopen the federal government after a partial shutdown. While ongoing negotiations regarding funding for the Department of Homeland Security will continue over the next week and a half, the bill ensures that other major government departments will remain operational.
This development has brought a measure of relief to the cryptocurrency market, which had been experiencing a precipitous price drop earlier in the day. Bitcoin, which had plummeted to a low of $72,800—a level unseen since before Trump’s November 2024 election victory—has bounced back somewhat amid the positive news.
As of the latest trading, Bitcoin is priced around $74,800, reflecting a 4.5% decline over the past 24 hours but a notable recovery from its intraday low. Similarly, Ether (ETH) trades near $2,181 but remains down 7% over the last day and has lost 26% over the previous week. Other prominent cryptocurrencies like XRP and Solana have also seen significant declines amid this volatility.
Broader Market Context
The equity markets have likewise responded to the end of the shutdown with a partial recovery from their worst session levels. Nonetheless, major indexes continue to reflect caution: the Nasdaq is down approximately 2% and the S&P 500 has slipped by 1.3% as of Tuesday evening, indicating investors remain wary amidst ongoing economic and political uncertainties.
Market Watch: Continuing Volatility and Strategy Responses
Despite the temporary stabilization, the crypto market remains volatile. Ethereum and other altcoins have experienced sharper losses compared to Bitcoin, underscoring shifting investor sentiment and risk appetite.
In related market news, Strategy, the firm led by longtime Bitcoin advocate Michael Saylor, has publicly stated its belief that it can withstand a Bitcoin price drop to as low as $8,000 without compromising its $6 billion net debt obligations. The company plans to gradually convert convertible debt into equity, a move designed to avoid issuing more senior debt but which carries warnings from critics about potential shareholder dilution and financial strain if Bitcoin prices tumble further.
Outlook
The latest government funding approval provides a short-term boost to risk assets, including cryptocurrencies, by reducing immediate fiscal uncertainty. However, market participants remain cautious, keeping an eye on upcoming negotiations concerning Homeland Security funding and broader economic indicators.
As Bitcoin steadies for now around $74,800, investors will be watching to see if the cryptocurrency can regain upward momentum or if broader macroeconomic pressures will continue to weigh on prices.
For ongoing coverage of cryptocurrency markets and related financial news, stay tuned.