Bitcoin finds relief after the end of the temporary government shutdown in the US.

Bitcoin finds relief after the end of the temporary government shutdown in the US.

Bitcoin recovers to $76.000 after the US budget agreement, although panic persists and analysts are monitoring possible short-term drops.

Bitcoin's price saw a moderate recovery on Tuesday after the official announcement legislative agreement to end the temporary shutdown of the United States government. The leading digital currency by market capitalization, which had fallen to levels of $73.000 during the day, reacted positively given the stabilization of the fiscal outlook in Washington. 

Following the Senate's approval of the funding bill, the price of Bitcoin managed to surge again, reaching the range of $76.700At the time of this writing, this news provided a much-needed respite for risk assets, which have been under constant pressure due to political and macroeconomic uncertainty.

However, while the legislative progress eliminated the immediate risk of a prolonged administrative paralysis, the overall sentiment among market participants has not shifted toward radical optimism. The approval of federal funds acted as a catalyst for a technical rebound, but the crypto ecosystem is still processing the aftermath. a volatility that has marked the beginning of 2026

Despite this momentary relief, the flagship cryptocurrency of the digital finance sector continues to navigate turbulent waters, attempting to consolidate a floor after the recent annual lows.

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Bitcoin's price is recovering, but fear prevails.

The US Senate's approval of the funding bill has been welcomed as a sign of order amid a period of high political friction. 

Historically, markets tend to punish government operational uncertainty, and Bitcoin has been no exception this time. The rebound from $73.000 to $76.700 reflects how resolving budget conflicts can alleviate short-term selling pressure. 

However, the Fear & Greed Index It remains at an alarming level of 14 out of 100, which categorizes the current sentiment as "extreme panic".

Current Bitcoin (BTC) market price.
Source: CoinGecko

For market experts and analysts, this disconnect between the rising price and investor sentiment suggests that the market still doubts the sustainability of this move. Investors seem to be operating with caution, interpreting the end of the government shutdown more as a pause in bad news than as the start of a new bullish cycle. 

The fragility of the crypto market is evident when observing that, despite Bitcoin's recovery of almost $4.000 in just a few hours, the trading volume reflects a defensive stance, with many traders preferring to stay on the sidelines or use rebounds to liquidate positions for fear of further corrections.

Bitcoin between technical adjustment and institutional resilience

Despite the positive response to the news from Washington, technical analysis suggests that the path to a definitive recovery is fraught with obstacles. Several industry analysts anticipate that this relief could be temporary and that Bitcoin has not yet completed its correction phase. 

In fact, there is a growing consensus among experts that the price of the leading cryptocurrency could seek deeper support levels, placing the $60.000 as a likely target in the short term. Some reports even suggest that, should that psychological level be lost, the asset could test lower levels, down to $58.000, if global macroeconomic conditions do not show a structural improvement.

This bearish view is supported by the prolonged price decline that Bitcoin has experienced since October 2025. However, the picture isn't entirely bleak. A significant number of analysts maintain an objective and constructive stance, pointing out that corrections of this magnitude are necessary for purge excess leverage in the market. 

From this perspective, the current scenario of "extreme panic" historically coincides with the formation of generational bottoms. The long-term investment thesis remains intact for those who believe that Bitcoin's infrastructure and institutional adoption continue to strengthen despite the current price action.

Cryptocurrency market Fear and Greed Index over the last 30 days.
Source: CoinMarketCap
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Outlook for Bitcoin in 2026

As the cryptocurrency market absorbs the implications of the end of the government shutdown, investors' focus is shifting to projected performance for 2026. Although the clouds of a correction linger on the immediate horizon, forecasts for the second half of the year maintain a positive tone. moderate optimism

The expectation that the bottom of Bitcoin and the crypto market is near is based on previous cycles where, after periods of extreme fear and capitulation, cryptocurrencies have demonstrated a remarkable ability to recover.

Bitcoin's behavior in the coming weeks will be crucial in determining whether the $73.000 level consolidates as a definitive support or if it has simply been a technical pause in a broader downward trend. 

With US fiscal policy temporarily stabilized, attention will once again turn to inflation data and the Federal Reserve's upcoming decisions. If Bitcoin manages to absorb the current selling pressure, analysts suggest that programmed scarcity and pent-up institutional interest could fuel a significant recovery, allowing the asset to regain lost ground before the end of the year. 

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