Will the Crypto Market Recover After Trump’s Advisor Signals the End of the U.S. Government Shutdown

The cryptocurrency market may be on the verge of recovery after Kevin Hassett, economic advisor to President Donald Trump, suggested that the longest U.S. government shutdown in history could soon come to an end.

According to Hassett, an agreement could be reached later this week, a development that could calm anxious markets and restart key regulatory processes that have been frozen during the shutdown.

Crypto Market Under Pressure as Investors Wait Over the past 24 hours, the total cryptocurrency market capitalization has dropped more than 3%, hovering around $3.7 trillion.

Bitcoin has fallen 3.2%, while major altcoins — Ethereum (ETH), BNB, Solana (SOL) and XRP — are down between 1% and 5%. The decline stems mainly from investor caution, as markets await the release of the first inflation data since the government shutdown began. The three-week closure has delayed key economic reports and regulatory activity, creating uncertainty across financial markets.

SEC’s Return Could Revive Altcoin ETF Momentum A major factor that could boost the crypto market once the government reopens is the return of the U.S. Securities and Exchange Commission (SEC) to full operations.

The agency has been unable to issue rulings on spot ETF applications for altcoins such as Solana, XRP, and Litecoin. Experts believe the likelihood of approval is high, particularly since the SEC has already adopted unified standards for listing crypto commodity trusts.

Resuming these reviews could reignite optimism and capital inflows across the digital asset market.

Federal Reserve Meeting Could Be a Turning Point The Federal Reserve is expected to hold a key policy meeting next week, where it may announce a 25-basis-point interest rate cut.

According to the CME FedWatch Tool, the probability of this move stands at 98.9%, while Polymarket shows a 96% chance of a rate cut. The long-delayed inflation data could provide a clearer view of the economy’s condition, supporting further policy easing.

This would likely lead to renewed liquidity flows into risk assets, including cryptocurrencies.

CLARITY Act Could Move Forward The end of the shutdown may also accelerate progress on the CLARITY Act, a pivotal bill designed to define jurisdictional boundaries between the SEC and CFTC and establish a regulatory framework for digital assets.

Although discussions have continued informally, formal legislative progress has been halted.

Resuming government operations could provide the momentum needed to finalize long-awaited crypto regulation.

U.S. May Launch a Strategic Bitcoin Reserve Pro-crypto Senator Cynthia Lummis recently stated that the U.S. government could begin funding a strategic Bitcoin reserve as soon as the shutdown ends.

The initiative — aimed at creating the first national Bitcoin reserve in U.S. history — would serve as a hedge against inflation and geopolitical uncertainty. If the United States, the world’s largest economy, begins accumulating Bitcoin in its reserves, it would mark a historic moment for the crypto industry — and a major signal of institutional confidence in digital assets.

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