Will Bitcoin make a comeback? What will happen after the US government reopens? Experts weigh in

The reopening of the US government and bipartisan proposals to regulate cryptocurrencies could mark the beginning of a new era for the crypto market.

“The U.S. Senate’s decision to end the government shutdown is an important step in restoring economic stability,” Gracie Chen, CEO of cryptocurrency exchange Bigget, said in a statement.

Technovit CEO Alexander Pereshchan said the lockdown created uncertainty in the cryptocurrency market and caused investors to withdraw from risky assets. “The closure of public institutions, delays in the release of macroeconomic data, and declining confidence in the financial stability of the United States led to increased volatility and investors turning to safer instruments such as the dollar, gold, and government bonds.During this period, liquidity in the crypto market decreased, and investor caution led to a temporary decline in the prices of many major cryptocurrencies, including Bitcoin,” Pereshchan said.

Experts say an end to political uncertainty could boost institutional investor confidence and reinject significant liquidity into the market. Bitget CEO Chen said, “As macroeconomic uncertainty eases, institutional investor confidence will strengthen and we will see significant capital inflows from traditional financial participants. This could lead to an upward trend in the market toward the end of the year, increasing trading volumes, price stability, and overall market activity.”

In addition to the government reopening, a bipartisan bill in the US Senate aimed at establishing a clear framework for the cryptocurrency market is reportedly having a positive impact. The bill would transfer oversight of spot trading in non-securities cryptocurrencies to the Commodity Futures Trading Commission (CFTC), while investment-grade digital assets would remain subject to SEC oversight. This aims to resolve jurisdictional confusion between the two institutions and create a more transparent regulatory environment for both exchanges and investors.

Chen claimed that all these developments “herald a more predictable and reliable digital asset market that supports innovation without stifling growth.”

*This is not investment advice.