Bitcoin (BTC) Price: Recovers to $106K as Government Shutdown Nears End

TLDR

• Bitcoin dropped below $100K to $99K but recovered to $106K over the weekend, cutting weekly losses from 10% to 5%
• The US Senate voted 60-40 to advance a government funding bill, sparking hopes the month-long shutdown will end soon
• Bitcoin held the 365-day moving average as support, avoiding a potential bear market signal
• Trump posted about a possible $2,000 tariff dividend payment, which pushed Bitcoin from $103K to over $105K
• Michael Burry’s $1.2 billion short position on AI stocks triggered the initial market decline that hit crypto harder than equities

Bitcoin bounced back to $106,000 over the weekend after a tough week that saw the cryptocurrency briefly drop below the $100,000 mark. The recovery came as US lawmakers made progress toward ending the government shutdown.

The week started badly for Bitcoin. The price fell approximately 10% at its worst point.

On Wednesday, Bitcoin hit a low of $99,000. This drop worried many traders and analysts.

The decline began when news spread about Michael Burry establishing a $1.2 billion short position against AI stocks like Nvidia and Palantir. This news hurt US stock markets on Tuesday.

All three major stock indexes fell that day. Bitcoin dropped about 5% the same day.

Crypto markets actually fell harder than stock markets. Altcoins recorded even steeper losses than Bitcoin.

Analysts said institutional investors were leaving crypto. These large players had been reducing their positions since October 10.

The Tuesday stock market decline made the situation worse. The supply and demand balance in crypto broke down quickly.

Critical Support Level Holds

Bitcoin fell below the $100,000 level on Wednesday. This was a psychological support point that many traders watched.

The 365-day moving average became the next critical level. Analysts track this line because breaking below it often signals a bear market.

Bitcoin did not break this support level. The price found buyers at this point and started recovering.

This was the third time in recent months that the 365-day moving average held as support. The same thing happened during the August 2024 yen carry trade crisis and the April 2025 tariff crisis.

Ethereum also fell hard during the week. It dropped to $3,100 on Wednesday.

By Sunday, Ethereum recovered above $3,600. Its weekly loss ended at 6.55%.

Government Shutdown Progress Sparks Rally

The US government shutdown has lasted over a month. About 750,000 federal employees have been furloughed.

Flight delays increased nearly 10% because air traffic controllers stopped receiving pay. Essential government programs were disrupted.

Raoul Pal from RealVision said the shutdown was reducing market liquidity. He believed ending the shutdown would help crypto prices recover.

On Sunday, Senate Majority Leader John Thune suggested the shutdown might end soon. Bitcoin immediately rallied on this news.

The Senate voted 60-40 to move forward with a funding bill on Monday. Eight Democrat senators joined Republicans to advance the bill.

The bill would fund the government until January 30, 2026. It now moves to a full Senate vote in the coming days.

Betting markets on Polymarket shifted quickly after Thune’s comments. The expected end date for the shutdown moved from November 20 to November 11.

Trump’s Dividend Post Adds Fuel

President Trump made a post on social media that helped Bitcoin’s recovery. He discussed tariffs and mentioned a possible dividend payment.

Trump wrote about a dividend of at least $2,000 per person. He said high income people would not receive it.

Traders thought these payments could flow into stocks or crypto. Bitcoin jumped from $103,000 to over $105,000 after Trump’s post.

The cryptocurrency ended the weekend near $106,330. Weekly losses closed at 5% instead of the 10% seen at the worst point.

Several Federal Reserve officials are scheduled to speak this week. Mary Daly and Alberto Musalem will speak on Monday.

On Wednesday, John Williams, Anna Paulson, Raphael Bostic, Chris Waller, Stephen Miran, and Susan Collins are scheduled to speak. Traders will watch for hints about a potential rate cut at the December Federal Open Market Committee meeting.

The government shutdown has stopped most US economic data collection for over a month. This means traditional economic indicators will have limited influence on markets for now.

The Senate’s initial procedural vote on the funding bill is expected Tuesday.

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