Cryptocurrency Market Rebounds Amid U.S. Government Shutdown: Bitcoin, Ethereum, XRP, and Solana Rise Simultaneously
February 14 News: Due to the U.S. government shutdown caused by a budget impasse, parts of the Department of Homeland Security experienced a partial shutdown. However, amid increasing political uncertainty, the cryptocurrency market defied the trend and rallied, with major assets such as Bitcoin, Ethereum, XRP, and Solana showing significant rebounds, driving the overall market capitalization back up.
Market data shows that in the past 24 hours, the total cryptocurrency market cap increased by nearly 5%, reaching approximately $2.38 trillion. The prolonged weeks of volatility and decline had kept many investors on the sidelines, but this recent rebound has injected new activity into the market. Although some analysts predicted that the shutdown would increase selling pressure, the actual market movement has contrasted with those expectations.
Bitcoin is currently trading at around $69,765, up approximately 4.8% for the day. Despite a roughly 27% decline over the past month, signs of short-term stabilization are emerging. Ethereum has held the $2,000 level, now trading at $2,085, up 3.07%, indicating some defensive strength. XRP performed even better, trading at $1.44, with a single-day increase of over 6%, though it remains nearly 31% lower for the month. Solana also gained strength, now at $86.25, up about 8% intraday, though it is still down roughly 40% from a month ago.
Notably, the price rebound has not been accompanied by a corresponding increase in trading volume. Bitcoin’s 24-hour trading volume has decreased by about 17%, and Ethereum has also seen a slight decline, indicating that funds remain cautious. Market participants believe that this rally mainly reflects emotional recovery and short-term covering rather than a full trend reversal.
On a macro level, the U.S. government shutdown has heightened uncertainty about economic prospects. Some investors view cryptocurrencies as a hedge, which has driven short-term buying. Moving forward, inflation, interest rates, and progress in fiscal negotiations will continue to be key factors influencing the direction of the crypto market.
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