Bitcoin has quickly bounced following the passage of the funding bill in the U.S. House, a move that consequently ends the U.S. government shutdown pending President Donald Trump’s signature. This comes just as the flagship crypto dropped to a new yearly low of around $73,000, its lowest level since Trump’s victory in November 2024.
Bitcoin Jumps As House Moves To End Government Shutdown
Bitcoin has climbed from an intraday low of around $73,000 and is now trading just below the psychological $75,000 level. The flagship crypto had notably broken above the $75,000 level following the House’s passage of the funding bill to end the government shutdown.
As CoinGape reported, the U.S. government shutdown began on January 31 as the House couldn’t meet in time to pass the funding bill, which had passed in the Senate on January 30. The bill narrowly passed 217 to 214 and will now head to the White House for Trump’s signature.
The end of the U.S. government shutdown is a positive for Bitcoin, which continues to decline to new yearly lows due to factors such as increased selling from BTC ETFs and miners, and macroeconomic factors such as the nomination of ‘inflation hawk’ Kevin Warsh as the next Fed chair.
CoinGape reported earlier today how the BTC price drop has put the market in a state of extreme fear. The flagship crypto dropped to as low as $73,000 today, its lowest level since November 204 when Trump won the presidential elections.
Altcoins also bounced alongside Bitcoin following the House’s passage of the funding bill to end the government shutdown. However, these crypto assets are still down on the day, with ETH trading around the psychological $2,200 level.
Crypto Traders Increasing Bets On A Decline To $70,000
Crypto traders are currently predicting that BTC will likely crash to $70,000 this month amid its recent decline. Polymarket data shows a 61% chance of that happening as traders increase their bets following the latest drop to $73,000.
Meanwhile, the probability that the Bitcoin price will reach $90,000 this month has fallen to 18%. The flagship crypto notably climbed to $97,000 at the start of the year, but is now over 14% year-to-date (YTD).
Market analyst The Cryptic Wolf indicated that this current range could mark the bottom for BTC, stating that he expects the crypto asset to bounce from the $70,000 to $74,000 range. This came as he warned that the leading crypto could still drop to $70,000 if it doesn’t hold around this level. Meanwhile, the analyst is convinced Bitcoin isn’t in a bear market and expects it to set new highs this year.
