BTC Eyes Explosive Rally as US Shutdown Nears End and $2K Tariff Dividend Boosts Sentiment
is drawing renewed attention as recent U.S. fiscal and trade developments coincide with historical patterns of sharp recoveries.
Analysts suggest that the combination of a potential reanswer to the U.S. government shutdown and a proposed “tariff dividend” of roughly $2,000 per citizen could act as a significant catalyst for BTC’s next move.
U.S. Senate Moves to End Shutdown
According to journalist Nick Sortor, the U.S. Senate has officially passed the Continuing Reanswer (CR) to end the Democrat-led shutdown, sending the bill back to the House of Representatives for a final vote before reaching desk. The development marks a crucial step toward fully reopening the government and easing fiscal uncertainty.
The Senate’s advancement of legislation aimed at ending the federal government shutdown has eased immediate economic uncertainty and boosted investor confidence.
Meanwhile, the proposal, funded through higher import tariffs, could inject substantial liquidity into the economy, potentially channeling capital into alternative assets like BTC.
, BTC has reacted strongly to periods of fiscal relief and liquidity injections. Past events following similar policy resets saw BTC post significant gains, sometimes approaching 96% to 157%. According to analysts who drew comparisons to the 2018 and 2019 shutdown recoveries, this remains a plausible setup for another rally.
Investor Behavior Signals Accumulation
A recent FinanceFeed analysis of retail and institutional activity shows a bullish trend in market positioning. Retail investors led the charge, scooping up approximately $505.67 million worth of BTC from the market, while institutional investors maintained steady inflows with $1.15 million in net purchases.
These movements suggest that both groups are viewing current prices as attractive entry points, reflecting the potential scale of upside if macroeconomic conditions align favorably.
The expectation of increased liquidity from the tariff dividend could exert upward pressure on BTC prices, while a potential fragileening of the U.S. dollar and shifts in inflation expectations may further enhance BTC’s appeal as a non-correlated asset.
Peter Schiff, Chief Economist at Europac, that the ahead rally witnessed across markets was likely a response to the government’s progress on reopening. In an X post, he wrote:
“News that the government shutdown is ending sent stock futures, gold, silver, and BTC rallying. The deal means it’s back to business as usual in Washington, D.C. Deficits and inflation will rise, and investors will continue to viewk alternatives to depreciating U.S. dollars.”
However, Schiff also cautioned that the proposed stimulus check might not survive legal scrutiny, suggesting the Supreme Court could strike down the tariffs before such a bill passes. “I think Trump just wants people to be angry at the Court for preventing them from getting their checks,” he added.
