US Government Shutdown Ends — And Why Crypto Could Rally Next
The U.S. Government Shutdown Just Ended — And Crypto Traders Are Watching for a Big Move
After 43 days, the U.S. government shutdown has officially ended — and the impact on markets could be much bigger than most investors realize. While price action has stayed calm on the surface, macro liquidity, Bitcoin dominance, and ETF catalysts suggest that a crypto rally over the next few days is highly possible.
Here’s the complete breakdown of what’s happening behind the scenes, why liquidity is about to surge, and the three crypto catalysts that could send altcoins sharply higher.
Crypto Is ABOUT TO RALLY!! Watch This NOW!!
1. TGA Liquidity Is Coming Back Into the Market
When the government shuts down, federal spending freezes — and so does liquidity.
The Treasury General Account (TGA), essentially the government’s bank account at the Federal Reserve, has been hoarding cash since the debt ceiling was raised. With the shutdown ending, the Treasury can start spending again.
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Roughly $1 trillion is sitting in the TGA
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Only hundreds of billions will likely hit the economy
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But that inflow alone creates a short-term liquidity boost
This is historically bullish for risk assets, including crypto.
2. Early Bullish Signs: Bitcoin Dominance Dropped Immediately
Most investors looked at the charts and saw nothing — just sideways price action.
But beneath the surface, something very interesting happened:
👉 The moment the shutdown ended, Bitcoin dominance sharply dropped.
This signals capital rotating into altcoins, even without big candles on the chart. It means traders are positioning ahead of expected catalysts in the altcoin market.
This is usually one of the first signs of:
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Early altcoin season rotation
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Increased market risk appetite
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Liquidity preparing to flow deeper down the stack
If BTC dominance continues to fall, expect aggressive altcoin performance.
3. Bitcoin and Ethereum Charts Show Breakout Potential
Bitcoin Price Outlook
Bitcoin recently pulled back but is now showing momentum toward a new local high. Dan’s model points to:
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A mini-cycle ending higher
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Potential move toward $110,000 in the short term
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A near-term breakout supported by strong 4-hour action
Ethereum Price Outlook
Ethereum is showing similar strength:
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ETH is close to breaking above the 4-hour Bollinger band moving average
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Next target is the daily Bollinger band MA around $3,670
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A breakout would return ETH to fully bullish territory
Both charts suggest a short-term rally is setting up.
4. Watch the DXY — A Drop Would Confirm the Liquidity Surge
Historically, after every government shutdown (2013, 2018–2019), the U.S. dollar index (DXY) fell sharply afterward.
A falling DXY =
✔️ More liquidity
✔️ Cheaper dollars globally
✔️ Risk-on assets (crypto) pump
Right now, the DXY hasn’t moved yet. If it suddenly drops in the next 1–2 days, it could trigger:
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Strong altcoin rotation
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Bitcoin breakout confirmation
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Large capital inflows across the market
If DXY rises instead?
That’s the bearish scenario — but less likely given Treasury spending.
5. Three Huge Altcoin Catalysts to Watch
Here’s where things get especially bullish. The next few days and weeks may bring three of the biggest altcoin catalysts of the year.
📌 Catalyst #1: Altcoin ETFs (XRP ETF Listing Today)
Several ETFs are preparing to list:
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XRP ETF launching today
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Additional altcoin ETFs may follow within 24–48 hours
While ETF listings don’t guarantee inflows, they open new channels for global liquidity — especially into Ethereum ecosystems and blue-chip altcoins.
Historically:
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ETH pumps → DeFi borrowing increases → liquidity circulates → altcoins outperform
📌 Catalyst #2: SEC “Innovation Exemption” Order
This potential announcement could temporarily legalize most on-chain activity in the U.S., including:
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Tokenized real-world assets (RWAs)
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DeFi protocols
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Social tokens
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ICOs (yes — even ICOs)
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Prediction markets
Coinbase is already preparing, launching major events like the Monad ICO for retail investors — likely front-running the SEC announcement.
If this hits, expect explosive growth on Ethereum, Solana, and other altcoin blockchains.
📌 Catalyst #3: The Crypto “Clarity Act”
This could be the big one.
The Clarity Act is expected possibly by the end of this month, following the Genius Act for stablecoins earlier this year.
Recall:
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Genius Act → Ethereum pumped 50% in one month
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Related altcoins surged violently
The Clarity Act covers all other crypto market structure. If passed:
👉 We could see a 50%+ altcoin rally across the board
👉 It would be the largest regulatory tailwind since Bitcoin ETFs
👉 It may mark the start of a true altcoin season
Keep this on your radar.
6. What to Watch Right Now
To understand where capital is flowing, focus on these two metrics:
✔️ Bitcoin Dominance (BTC.D)
Falling dominance = altcoin inflows starting
Rising dominance = liquidity staying in Bitcoin
✔️ U.S. Dollar Index (DXY)
Falling DXY = bullish
Rising DXY = risk-off
If BTC.D falls and DXY falls at the same time?
That’s your signal for the altcoin surge.
Conclusion: A Perfect Storm of Liquidity + Catalysts
The end of the U.S. government shutdown isn’t just a political headline — it’s a macro liquidity event that could ripple through the crypto market in days.
Pair that with:
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Altcoin ETF listings
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A potential SEC innovation exemption
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The Clarity Act moving through Congress
…and you get one of the most bullish setups for altcoins in months.
The charts are already showing early signs.
The liquidity is about to hit.
And the catalysts are lining up.
If history repeats, the next few days and weeks could be very exciting for crypto.
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