Bitcoin surged on positive news from the US. What you need to know
The leading cryptocurrency is growing on positive expectations of changes in the domestic political situation in the United States and promises of financial assistance to the population. 
RBC-Crypto does not provide investment advice; this material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
The Bitcoin (BTC) price is showing strong growth amid several key events in the US, rising 4% in less than 24 hours. This price movement stems from several positive pieces of news: the potential end of the government shutdown, the possible large-scale distribution of “free” money to the US population, and the launch of leveraged spot crypto products on regulated exchanges—products that have been unavailable to US traders for years.
Bitcoin's price rose 4% in 24 hours, from $102,000 to $106,000 by 3:10 PM Moscow time on November 10. The overall crypto market surged alongside it, with its total market capitalization increasing to nearly $3.6 trillion, also representing a 4% increase. Ethereum rose to $3,600, up over 5% over the same period.
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105 930 +3 670 (3.59%) OKH Nov 10 15:58:48 1d 3d 1m 3m 1g 5l
Helicopter money
On November 9, US President Donald Trump promised to pay every American, except high-income individuals, at least $2,000 using funds collected from US customs duties. Similar stimulus payments have already been seen as a driver of crypto market growth during previous cycles.
Such events are called “helicopter money”—a metaphor describing gratuitous direct cash payments from the government to the population. It's generally accepted in the crypto community that some of this money will be used to purchase cryptocurrency, creating additional demand for the asset and pushing prices up.
Similar stimulus payments have been seen as a driver of crypto market growth during previous cycles, including the benefits paid to US citizens in 2020 during the pandemic. That period coincided with the surge in popularity of trading apps like Robinhood and significant growth in the crypto market.
In April 2020, when the government transferred $1,200 to citizens, Brian Armstrong, CEO of the American crypto exchange Coinbase, announced a significant increase in deposits to the exchange for that exact amount. Although the exact amount of funds sent to the crypto market is unknown and there is no significant evidence of an impact on exchange rates, the event itself is viewed positively.
U.S. Treasury Secretary Scott Bessent said Trump's proposed $2,000 “dividend” from tariffs could be realized through tax breaks included in his recent economic policy bill, according to Bloomberg.
Possible measures include tax exemptions for overtime and Social Security income, as well as a deductible interest rate on auto loans. The possibility of reducing the US national debt with funds raised from trade tariffs is also discussed.
Ending the shutdown
The US Senate has approved a temporary government funding bill that will end the 40-day government shutdown. The bill will now be sent to the House of Representatives for signature by the president.
The current shutdown began on October 1 and has already become the longest in US history. During this period, the price of Bitcoin has fallen by more than 11% to approximately $106,000. The total crypto market capitalization has fallen by the same percentage to $3.6 trillion.
The crypto community believes the government shutdown is hindering the progress of cryptocurrency legislation and the adoption of U.S. crypto-based exchange-traded funds (ETFs).
Against this backdrop, the Polymarket forecast marketplace for the duration of the shutdown has amassed hundreds of millions in cryptocurrency bets on various shutdown end dates. For example, a pool with the shutdown options “will end on November 8-11,” “from November 12-15,” and “after November 16” has amassed over $21 million, with an 87% probability of the latter ending.
Cryptocurrency trading
Another notable development was the US Commodity Futures Trading Commission's (CFTC) initiative to launch leveraged spot crypto products on regulated exchanges.
This was confirmed by the acting head of the CFTC, Caroline Pham, where the agency is in discussions with exchanges such as CME, Cboe, ICE (the operator of the NYSE), Coinbase Derivatives, and others on the launch of such crypto products.
The CFTC is one of the main exchange regulators in the United States and one of two main bodies that claim to be the primary regulator of the crypto market.
“I look forward to the new products that we expect to begin trading on our markets before the end of the year,” Pham told Coindesk.
Currently, most regulated markets offer futures instruments on cryptocurrencies such as Bitcoin and Ethereum, which are considered commodities. Spot trading in this context implies immediate delivery of crypto assets upon purchase, rather than at a future date.
Source: cryptonews.net
