The crypto market showed early signs of recovery on February 4 after U.S. President Donald Trump signed a funding bill that ended a brief government shutdown. The move reduced political uncertainty that had unsettled markets over the past few days.
Bitcoin recovered to around $76,000 during Asian trading hours, rebounding from a low of roughly $73,100 on February 3. The broader cryptocurrency market also stabilized, with total market capitalization holding near $2.7 trillion. Ethereum and other major altcoins saw similar recoveries.
The partial shutdown began on January 31 due to disagreements over Department of Homeland Security funding and immigration policy. Several federal agencies were affected, and delays in key economic data increased investor caution, pressuring cryptocurrencies alongside risk-oriented stocks.
Trading activity rose as prices recovered, suggesting that investors were taking short-term positions in response to the political developments. However, prices remain well below recent highs, and overall market confidence is still fragile.
Analysts note that the rebound is primarily a relief-driven rally rather than a clear trend reversal. Sharp price swings and low liquidity conditions have characterized past sessions, leaving the market sensitive to further shocks.
Attention is now shifting to February 13, when DHS funding is set to expire. If negotiations fail, crypto and other risk assets could face renewed pressure. Investors are also watching upcoming U.S. economic data, including employment figures on February 6 and inflation reports later this month, which could influence market sentiment and liquidity.
For now, selective dip buying has supported prices, but caution remains the theme for the market in the weeks ahead.
