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Bitcoin Reclaims $106,000 as Shutdown Deal Progress Lifts Crypto

Reports of Senate progress, coupled with easing dollar‑funding stress, spurred risk appetite across tokens.

Overview

  • Bitcoin traded near $106,000 with ether back above $3,600 as the total crypto market value hovered around $3.6 trillion.
  • The rebound tracked signs of improving liquidity as the SOFR–EFFR spread narrowed to roughly 0.05 and use of the Fed’s standing repo facility fell back to zero.
  • Roughly $260 million to $342 million in short positions were wiped out over 24 hours, accelerating the move higher.
  • Spot ETF demand remains a headwind, with about $2.8 billion in U.S. bitcoin ETF outflows in recent weeks and an additional $558 million out of BTC funds and $47 million from ETH funds on Friday.
  • XRP led major altcoin gains on optimism around prospective spot‑XRP ETFs and Ripple’s Ripple Prime push, while analysts warn BTC needs to reclaim levels near $111,000 to reduce downside risk.