Bitcoin fell on Tuesday, extending its recent pullback as progress toward ending the US government shutdown and fresh purchases by top institutional holder Strategy Inc. failed to provide meaningful support.
The world’s largest cryptocurrency slipped 0.7% to $105,355.6 by 12:25 a.m. Eastern Time (05:25 GMT).
Bitcoin fails to react to shutdown progress or Strategy purchases
The decline came despite improving risk appetite in broader markets after the US Senate approved a bill to end the federal government shutdown. The bill now moves to the House of Representatives, which is set to debate it on Wednesday, with the Republican majority signaling its intent to pass it.
Still, the news had little impact on cryptocurrencies, as investors favored higher-risk assets such as equities. The rebound in tech stocks this week also drew capital away from digital assets.
Bitcoin saw limited benefit from Strategy Inc. (NASDAQ: MSTR) — the largest institutional holder — announcing the purchase of an additional 487 coins this week, bringing its total holdings to 641,692 bitcoins.
Jim Chanos closes short position against Strategy
Investor Jim Chanos, famous for shorting Enron before its 2001 collapse, said he closed his short position against Strategy Inc. after the company’s stock fell close to the fair value of its bitcoin holdings.
Chanos explained that his bet was based on Strategy’s shares trading at a steep premium to the value of its bitcoin assets but noted that the gap had narrowed sharply following last month’s extended selloff. He wrote on social media that the firm’s market-value-to-NAV multiple had dropped to 1.23× from 2.5× earlier this year, adding there was still room for further downside.
Strategy’s Class A shares have fallen 20.4% since the start of 2025 amid investor skepticism over its premium valuation relative to its bitcoin holdings.
Analysts: Path open for renewed rally
Despite the decline, some analysts believe bitcoin could be preparing for a new rally after Monday’s Senate vote to end the shutdown.
According to The Hill, the move is expected to conclude the longest federal shutdown in US history, injecting optimism into markets still reeling from a $20 billion liquidation on October 10.
Farzam Ehsani, CEO of crypto exchange VALR, told DL News the development “opens the door to a broader market rebound,” adding that bitcoin could target $130,000 if it breaks above $110,000 — a level he described as “the start of a new bullish cycle.”
Bitcoin now trades near $105,000. While the government has yet to formally reopen, Senate approval clears the way for a House vote expected to pass on Wednesday.
Signs of a near-term rebound
The $3.6 trillion crypto market has been moving sideways, about 5% above its early-November lows. Withdrawals from bitcoin ETFs have also paused, with the funds recording net sales of $1.2 million on Monday, according to DefiLlama.
Shutdown nears its end
The US Senate passed a bipartisan funding bill Monday night by a 60-40 vote, paving the way to reopen the government after a record 41-day closure, The Hill reported.
President Donald Trump backed the deal and is expected to sign it this week, restoring funding for key federal agencies and resuming pay for hundreds of thousands of workers.
Trump further boosted sentiment by reviving the idea of $2,000 stimulus checks financed by tariff revenues — a proposal aimed at supporting middle- and low-income households, reminiscent of the pandemic-era payments that helped ignite the last major crypto bull run.
With the shutdown’s end in sight and market optimism improving, attention now turns to Thursday’s US CPI report — a key test of whether the recovery can sustain momentum.
Investors are watching closely, as the data could influence the Federal Reserve’s December policy decision on interest rates.
CME FedWatch shows a 63% chance of a December rate cut, while Polymarket traders price the odds at 69%.
Altcoins edge lower
Other cryptocurrencies traded narrowly and mixed, lacking strong positive catalysts. Bitcoin’s weakness weighed on the broader market:
Ethereum slipped 1.6% to $3,549.22, while XRP rose 0.9% to $2.4739.
