Bitcoin Leads Crypto Rebound as U.S. Government Reopens and Liquidity Injections Drive Year-End Rally

COINOTAG News reports that as the U.S. government shutdown extends into day 41, historical performance suggests the S&P 500 has averaged a 2.3% uptick following previous standoffs, signaling a potential bid for risk assets. With a temporary funding bill advancing in the Senate and expectations of a near-term reopening, liquidity conditions could improve across equities and crypto markets.

Analysts at BiyaPay argue that the unlocking of liquidity may reflate appetite for high-beta assets, lifting both traditional equities and crypto asset ETFs. The early rebound is led by BTC and ETH, while the Federal Reserve could commence another liquidity injection cycle, providing a dual tailwind for digital assets and broader market sentiment.

BiyaPay additionally notes that it has expanded USDT trading to U.S. and Hong Kong equities and futures, while offering 0% fee crypto spot contracts to accelerate participation as flows resume into the new market cycle.