U.S. Government Shutdown Ends as House Passes $1.2 Trillion Spending Bill, Bitcoin Rises

yesterday / 20:27 3 sources positive

Key takeaways:

  • Bitcoin's 2% rise reflects relief over reduced political uncertainty rather than direct crypto legislation.
  • The DHS's short-term funding suggests ongoing regulatory uncertainty could resurface, impacting stablecoin oversight.
  • Traders should monitor for delayed economic data releases that could affect Fed policy and crypto volatility.

The U.S. House of Representatives has approved a $1.2 trillion federal spending package, bringing a four-day partial government shutdown to an end. The legislation passed by a narrow bipartisan margin of 217–214 and now moves to President Donald Trump, who has stated he intends to sign it into law without delay.

The spending package funds five full-year appropriations bills, covering approximately 97% of federal government operations through September 30, 2026. However, the Department of Homeland Security (DHS) received only a 10-day stopgap extension, keeping it operational through February 13, 2026, while immigration enforcement issues remain under negotiation.

The shutdown, which began on January 31, 2026, had furloughed thousands of federal workers and threatened delays in key economic data releases. With the bill's passage, federal operations are expected to return to normal, and furloughed workers will begin returning.

Market Impact: Following news of the bill's passage, the price of Bitcoin (BTC) rose by approximately 2% to $74,620. The brief four-day shutdown was notably shorter than the 43-day shutdown in 2025, which had previously delayed congressional efforts to pass digital asset market structure legislation.

The political stalemate that caused the shutdown stemmed largely from disputes over immigration enforcement policy, particularly following fatal shootings involving federal agents in Minnesota. Democratic lawmakers had pushed for new restrictions on agencies like U.S. Immigration and Customs Enforcement (ICE), including requirements for body cameras and preventing agents from remaining masked during field operations.

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