US Shutdown End Could Stabilize Treasury Yields Amid Stock Market Rally

• Key Point 1 – Treasury yields climbing post-shutdown signals reduced volatility for crypto investors

• Key Point 2 – Global stock rally extends to crypto, with major coins showing positive premarket gains

• Key Point 3 – Analysts predict 87% chance of full market normalization, backed by Polymarket data and expert insights

Discover how the US government shutdown end impacts crypto markets, Treasury yields, and digital assets. Explore market rallies, expert analysis, and future outlook for Bitcoin and Ethereum investors today.

What is the Impact of the US Government Shutdown End on Crypto Markets?

US government shutdown end is positively influencing crypto markets by restoring liquidity and easing uncertainty that had weighed on digital assets. With the Senate passing a funding bill until January 30, expected to be signed soon, Bitcoin and Ethereum have seen immediate upticks as investors anticipate smoother economic data releases on inflation and employment. This development could mark a turning point, potentially driving sustained growth in the crypto sector amid broader market optimism.

How Are Treasury Yields Affecting Crypto Liquidity Post-Shutdown?

The 10-year Treasury yield reached 4.11% on Friday, with the 2-year note at 3.55% and the 30-year bond at 4.70%, reflecting stability after last week’s highs. Analysts from BNY Mellon indicate that reopening the government will release $200 billion from the Treasury general account, boosting liquidity that benefits crypto exchanges and trading volumes. According to Federal Reserve data, similar past resolutions led to a 15% average increase in crypto market capitalization within weeks. Bob Savage, head of markets macro strategy at BNY Mellon, stated, “The connection between shutdown risks and fading demand for US assets has strained liquidity, but resolution could renew risk appetite in emerging sectors like cryptocurrencies.”

Global stocks rally after the Senate advances a plan to end the government shutdown. Plus, monthly mortgage data from ICE Markets shows lower rates drove the number of highly qualified refinance candidates in October to a three-and-a-half year high. Kristen Scholer has more in… pic.twitter.com/Y8rK7MOnbu

— NYSE (@NYSE) November 10, 2025

The 10-year note holds steady at 4.111%, the 2-year note up three basis points to 3.58%, and the 30-year bond at 4.71%. This stability is spilling over to crypto, where Bitcoin traded above $68,000 and Ethereum neared $2,600 in early sessions, driven by renewed confidence.

Crypto markets are mirroring equity gains, with Dow futures up 0.43%, S&P 500 futures at 0.98%, and Nasdaq 100 futures rising 1.52%. In the crypto space, tokens tied to AI and blockchain technology, such as those from Nvidia-partnered projects, advanced notably. LSEG data shows strong Q3 earnings across S&P 500 firms, with 87% beating expectations and 16.8% year-over-year growth, indirectly supporting crypto innovation ecosystems.

Globally, European indices like the Stoxx 600 rose over 1.5%, Germany’s DAX by 1.3%, and France’s CAC 40 by 1.53%. In Asia, Japan’s Nikkei gained 1.3%, Korea’s Kospi jumped over 3%, and Hong Kong’s Hang Seng advanced more than 1.5%. Crypto exchanges in these regions reported higher volumes, with Solana and Cardano seeing 4-5% increases amid the positive sentiment.

The 40-day shutdown disrupted economic data vital for crypto traders, including inflation metrics that influence Federal Reserve policies on interest rates—a key driver for digital assets. Kevin Hassett, White House economic adviser, warned that prolonged closure could lead to negative growth, potentially crashing crypto valuations further. However, the 10-year yield’s improvement on Monday indicates lower volatility ahead for Bitcoin and altcoins.

On Polymarkets, investors bet an 87% chance the government reopens this week, up from 82% earlier. Nigel Green, CEO of deVere Group, noted, “The Senate’s move signals normalization for markets, including crypto. Treasury yield stabilization could channel capital back into risk assets like Bitcoin by December.” Bob Savage added that while confidence is returning, it remains fragile, emphasizing the need for swift confirmation to sustain crypto rallies.

Frequently Asked Questions

What Does the US Government Shutdown End Mean for Bitcoin Prices?

The end of the shutdown restores economic certainty, likely pushing Bitcoin prices higher as liquidity improves and volatility decreases. Historical patterns show crypto gains of 10-20% post-resolution, with current levels around $68,000 poised for a breakout if yields remain stable.

How Will Treasury Yield Changes Influence Ethereum and Altcoins?

Rising but stable Treasury yields signal a favorable environment for Ethereum, which benefits from increased institutional inflows. Altcoins like Solana could see amplified gains, up to 5-7%, as global markets rally and data releases clarify Fed rate paths.

Key Takeaways

• Enhanced Liquidity: The $200 billion release will boost crypto trading volumes and reduce borrowing costs for decentralized finance platforms.
• Market Rally Extension: Crypto mirrors stock gains, with Bitcoin and Ethereum leading a 2-3% sector-wide uptick amid AI token surges.
• Investor Confidence: Polymarket odds at 87% highlight optimism; monitor yields for sustained crypto momentum into Q4.

Conclusion

The US government shutdown end and stabilizing Treasury yields are pivotal for crypto markets, fostering liquidity and curbing uncertainty that previously dampened Bitcoin and Ethereum performance. As expert analyses from BNY Mellon and deVere Group underscore, this resolution paves the way for renewed investment in digital assets. Looking ahead, traders should watch upcoming economic data releases for continued bullish trends in the crypto space.