Bitcoin hits $105,000 as crypto rallies on prospect of end to government shutdown

Bitcoin (BTC-USD) climbed along with altcoins Ripple (XRP-USD) and Solana (SOL-USD) as investors went risk-on amid expectations of continued fiscal spending following progress toward ending the government shutdown.

President Trump's suggestion of a "dividend of at least $2,000" per person stemming from tariff revenue also buoyed growth sentiment as tech stocks led the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) higher.

Bitcoin jumped more than 1% to move above $105,000 after hitting a six-month low last week of just under $100,000. Strategists have noted that government spending, once Washington reopens, should support crypto prices as increased liquidity enters the market. Ripple and Solana rose 10% and 3%, respectively.

The reopening would also allow economic data to be released, helping Fed officials determine their next policy move in December. If the data shows deterioration in the labor market, the Fed could decide to cut rates again following its October easing.

Additionally, Federal Reserve Bank of New York president John Williams recently indicated the central bank may soon need to expand its balance sheet through bond purchases, a move that would essentially push more money into the financial system.

"A potential Fed balance-sheet expansion, and especially a December rate cut, would be unequivocally bullish for Bitcoin and could reignite the broader bull market," according to a 10X Research note on Monday.

"Our base case is that this government-reopening bounce provides only temporary support, and that ETF outflows are likely to resume unless the Fed moves to cut or meaningfully expand liquidity," the note's authors wrote.

Bitcoin declined last month as forced selling from leveraged trades and long-term holders locking in profits sent prices tumbling after hitting an all-time high north of $126,000 in early October.

JPMorgan managing director Nikolaos Panigirtzoglou said in a note last week that the deleveraging episode "is largely behind us."

Panigirtzoglou forecast "significant upside for bitcoin over the next 6-12 months," potentially sending the price as high as $170,000.