Crypto pulls out of free fall as government shutdown ends
Analysis
Price Impact
HighThe end of the u.s. government shutdown provided immediate relief to the crypto market, halting a significant panic-driven plunge across major cryptocurrencies like bitcoin and ethereum.
Trustworthiness
HighThe information comes from coindesk, a reputable crypto news source, reporting on a verifiable event (u.s. house passing funding package).
Price Direction
NeutralWhile the immediate 'free fall' has paused, prices are still down significantly over the past 24 hours and week. the news prevented further declines but did not immediately reverse the recent bearish trend, leading to a stabilization.
Time Effect
ShortThe article explicitly states the pause is 'for the moment, at least,' and further government funding negotiations for a major department are expected over the next week and a half, suggesting temporary relief.
Original Article:
Article Content:
Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Crypto pulls out of free fall as government shutdown ends An unrelenting plunge in crypto prices on Tuesday has paused for the moment after the U.S. House very narrowly passed a funding package that will now head to the president's desk for signature. By Stephen Alpher , Nikhilesh De Feb 3, 2026, 7:28 p.m. Make us preferred on Google The House of Representatives very narrowly passed a funding package on Tuesday with a 217-214 vote, meaning the government will reopen from its partial shutdown as soon as President Donald Trump signs the bills. Lawmakers will negotiate further funding for the Department of Homeland Security over the next week and a half, but other major departments will be funded. The news — for the moment, at least — has halted a panic-stricken plunge in crypto prices on Tuesday, which saw bitcoin BTC $ 74,684.74 fall to as low as $72,800, its weakest level since before Trump's election victory in November 2024. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . At $74,800, bitcoin is still down 4.5% over the past 24 hours. Ether ETH $ 2,325.24 at $2,181 is down 7% over that same time frame and 26% over the past week. Other majors like XRP XRP $ 1.6274 and solana SOL $ 104.79 are seeing similar declines. U.S. stocks have bounced from their worst levels of the day as well, but remain sharply lower, with the Nasdaq now down 2% and S&P 500 1.3%. Read more: Bitcoin nears weekend low of $74,600 as stock selloff adds to crypto's woes Breaking News Bitcoin News top news In this article XRP XRP $ 1.6274 ◢ 2.11 % SOL SOL $ 104.79 ◢ 2.98 %