Bitcoin Eyes Short-Term Recovery as U.S. Senate Funding Bill Unlocks Liquidity for Crypto Markets

COINOTAG News notes that a Senate-passed temporary funding bill extends government operations through January 30, 2026, signaling progress toward ending the federal shutdown. While House approval remains pending, markets are pricing in improved liquidity, with potential release of funds trapped in the Treasury General Account (TGA).

For the crypto market, the liquidity surge could bolster support for leading assets such as Bitcoin (BTC) and Ethereum (ETH). If the SEC resumes full operations, the pace of crypto ETF approvals may quicken, creating new entry points for institutional capital and aiding price formation.

Yet investors should remain prudent: a House setback or a faster regulatory review could temper optimism. Analysts describe a temporary liquidity window that may drive a short-term rotation toward liquid assets, while non-core tokens and leveraged positions face headwinds amid cautious capital re-entry.