End To Us Gov’t Shutdown Sparks Institutional Buying, Etf...
The potential end of the 40-day US government shutdown is decreasing “financial uncertainty” among investors, leading to growing institutional crypto accumulation.
Institutional demand for digital assets saw a significant uptick as investors digested news about the US Senate reaching a much-awaited deal that could soon end the 40-day government shutdown.
On Sunday, the US Senate advanced a procedural vote to end the government shutdown, with the final post-cloture vote expected to occur on Monday, according to the Senate’s schedule.
Cryptocurrency markets saw a rebound after the report. The Starknet (STRK) token rose over 43% as the day’s biggest winner, followed by the Trump-backed World Liberty Financial (WLFI) token, up 28% over the past 24 hours, according to CoinMarketCap data.
The nearing end of the government shutdown may reduce the “financial uncertainty” among global investors and fuel a crypto market recovery, Nicolai Sondergaard, research analyst at crypto intelligence platform Nansen, told Cointelegraph.
Once the government’s operations resume, investors can “price in real fundamentals rather than speculation,” as key federal agency-backed releases were canceled due to the shutdown, added Sondergaard.
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Following the news of the potential end of the 40-day government shutdown, institutional investors have restarted their Ether (ETH) accumulation based on the growing average spot order data.
Ethereum may be entering a period of “low-volatility accumulation” if Ether price manages to remain afloat above the $3,000 to $3,400 range, according to crypto intelligence platform CryptoQuant.
However, the broader market recovery will ultimately depend on the incoming Bitcoin (BTC) and Ether ETF inflows, which will ultimately determine whether this recovery will see “sustained institutional demand rather than just retail or short-term flows,” according to Nomura Group’s Laser Digital derivatives trading desk, in a report shared with Cointelegraph.
Source: CoinTelegraph
