The US stock market surged on Wednesday as investors looked ahead to a crucial US House vote on a bill to end the government shutdown.
Bitcoin, however, fell sharply, retreating from its weekly highs amid shifting sentiment toward traditional assets.
The leading cryptocurrency dropped from an intraday high of $105,300 to around $101,200, a 3.4% decline over the day, nearing the $100,000 mark.
The move came as renewed flows into equities and precious metals drew investor attention away from digital assets.
Stocks rise on optimism over shutdown bill
The Dow Jones Industrial Average climbed 423 points, or 0.9%, reaching a new intraday high.
Gains in major financial names such as Goldman Sachs, JPMorgan Chase, and American Express supported the rally.
The S&P 500 added 0.1%, while the Nasdaq Composite slipped 0.3%, reflecting minor weakness in tech shares.
Meanwhile, safe-haven assets also gained ground. Gold rose to about $4,180 per ounce, while silver advanced above $53.
Both metals benefited from expectations that government data releases will resume once the shutdown ends.
The rotation toward equities and precious metals suggested that investors were positioning themselves for stability as Washington moves closer to resolving the funding impasse.
The rally in traditional markets came at the expense of riskier assets such as cryptocurrencies, with Bitcoin underperforming amid the broader shift.
“The market appears to be tilting toward the conventional end of the risk spectrum as the shutdown risk recedes,” one analyst noted, highlighting that Bitcoin remains largely outside the primary rotation of governance and policy-sensitive assets.
Crypto market faces pressure despite ETF inflows
While Bitcoin’s price retreated, spot Bitcoin exchange-traded funds (ETFs) showed renewed strength, signaling a gradual return of institutional interest.
On Tuesday, the ETFs recorded $524 million in cumulative net inflows — the largest single-day total since October 7.
Analysts suggest this could help support a rebound in crypto prices once broader market volatility eases.
The recent decline in Bitcoin, however, may be partly due to profit-taking after short-term gains earlier in the week.
With the Federal Reserve expected to issue its next policy guidance later this month, traders are watching for dovish signals that could renew risk appetite across digital assets.
If volatility in equities stabilizes following the end of the shutdown, Bitcoin may regain momentum as institutions re-enter the market in search of diversification.
Bitcoin and Ethereum near key support levels
Technical indicators show Bitcoin at a critical juncture.
The cryptocurrency’s price action continues to form lower highs and lower lows, pointing to a sustained downtrend.
Analysts warn that a close below $102,000 could pave the way for a deeper move toward $98,000, a key support zone that has been tested multiple times this year.
If the $98,000 level holds, Bitcoin could attempt a rebound.
A push above $104,000 to $106,000 would signal renewed strength, while failure to recover could trigger further downside.
Ethereum is showing a similar pattern.
After briefly recovering to $3,700, the token has struggled to maintain upward momentum and risks sliding back toward the $2,800 range if selling pressure persists.
Altcoins remain mixed, with only modest gains across smaller tokens, reflecting the broader cautious sentiment in the crypto market.
The coming days will be crucial for Bitcoin and Ethereum as traders assess whether support zones can hold.
Sustained stability above key resistance levels could help the market regain confidence heading into the second half of November.
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