Article Highlights

  • End of Government Shutdown: Analysis of the impact of the US government shutdown ending on the crypto market, including the flow of institutional liquidity.
  • Trump's Cash Bonuses: Assessment of Trump's plan to distribute cash bonuses and its potential effect on the crypto market through increased consumer spending.
  • Market Expectations: A look at market expectations regarding interest rate cuts by the Federal Reserve and their impact on the risky asset market.

The cryptocurrency market has recently experienced a strong boost driven by positive news. President Trump announced his intention to distribute cash bonuses of at least $2,000 USD to every citizen. Additionally, Trump indicated that the prolonged government shutdown may be nearing its end.

Government Shutdown Looming No More

The budget dispute in Congress led to the freezing of federal funding, affecting a wide range of sectors, from social security payments to defense spending. According to the Congressional Budget Office, this shutdown caused daily economic losses of approximately $1 billion USD.

Trump's Cash Bonus Plan

In parallel, Trump proposed a plan to distribute cash bonuses that would inject new liquidity into the economy. This plan relies on imposing tariffs on imported goods, with the aim of generating significant revenue that can be used to finance the bonuses.

Impact on the Crypto Market

History suggests that fiscal stimulus programs can lead to increased investment in high-risk assets such as cryptocurrencies. If Trump's plan is implemented, we may see a significant influx of funds into the crypto market, potentially leading to price increases.

Market Expectations and Interest Rate Cuts

Additionally, markets widely expect the Federal Reserve to cut interest rates in December, which could provide further support to the risky asset market. With liquidity returning to the market, investor sentiment is likely to improve, potentially leading to further gains in the cryptocurrency market.

In conclusion, the end of the government shutdown and the potential distribution of cash bonuses represent positive developments for the crypto market. With liquidity returning and investor sentiment improving, we may see a period of significant growth in the coming months.


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