As the U.S. government prepares to reopen after a 43-day shutdown, cryptocurrency investors are watching closely to see whether digital assets will soar or stumble in the coming months.
The signs point toward a potential crypto revival. With government funding secured until January 30, 2026, the Securities and Exchange Commission is fast-tracking cryptocurrency ETF approvals. An impressive 92 crypto ETF applications are pending, while 76 have already launched since July. This flood of approvals signals that big institutions are jumping aboard the crypto train like passengers rushing to catch the last ride of the day.
Big institutions are jumping aboard the crypto train like passengers rushing to catch the last ride of the day.
Bitcoin’s recent performance tells an encouraging story. The digital currency reached $126,296 in the fourth quarter of 2025, with $1.4 trillion flowing into ETFs. This massive influx came from Federal Reserve easing policies and what experts call “institutional FOMO” – the fear of missing out that even Wall Street professionals experience.
Several key policy changes are creating a friendlier environment for digital assets. The GENIUS Act, signed in July 2025, established the first federal framework for stablecoins. Meanwhile, an executive order on digital financial technology removed regulatory barriers that previously blocked blockchain startups. The CLARITY Act is also nearing completion to provide clear rules for digital assets. Trump’s Strategic Bitcoin Reserve further legitimizes cryptocurrency as a government-backed strategic asset, with over 207,000 Bitcoin currently held.
The reopening brings another boost through Treasury spending. After 43 days of limited government operations, the Treasury General Account will resume injecting liquidity into markets for several months. This government spending acts like adding water to a dried riverbed, helping money flow more freely through financial systems. The Federal Reserve’s plan to end Quantitative Tightening in December will further support market liquidity by stopping balance sheet contraction.
Global trends also favor cryptocurrency adoption. Countries in Southeast Asia and the Middle East are increasingly using crypto for cross-border payments, reducing their dependence on traditional dollar-based systems. This shift creates steady demand for digital currencies.
However, some uncertainty remains. The Federal Reserve’s December meeting will determine whether interest rates get cut again. Traders currently see only a 51% chance of rate reductions, down from 95% a month ago.
The combination of regulatory clarity, institutional investment, and government spending resumption suggests crypto could indeed roar back as Washington returns to business.
