U.S. stock markets rallied on Wednesday as optimism grew over a potential resolution to the government shutdown, while Bitcoin retreated from recent highs.
The Dow Jones Industrial Average rose by 423 points, or 0.9%, reaching a new intraday high as investors awaited a House vote on a bill to end the 40-day government closure.
Stocks Surge as Confidence Returns
Strong performances from banking giants such as Goldman Sachs, JPMorgan Chase, and American Express fueled the rally.
The S&P 500 inched up 0.1%, while the Nasdaq Composite slipped 0.3%, showing slight weakness in tech shares.
Meanwhile, gold climbed to around $4,180 and silver rose above $53, boosted by safe-haven demand and expectations of resumed government data releases once the shutdown ends.
Investors seemed to rotate back into equities and commodities with clearer ties to fiscal policy and credit conditions.
Bitcoin Pulls Back
Bitcoin dropped 3.4%, falling from an intraday high of $105,300 to a weekly low near $101,200.
The decline came as investors shifted capital toward traditional assets, signaling a temporary cooling of crypto enthusiasm following a strong rally earlier in the week.
The move reflects a broader recalibration in risk appetite.
As the threat of a prolonged shutdown fades, market participants appear more comfortable positioning around traditional investments rather than digital assets.
ETF Inflows Suggest Long-Term Optimism
Despite short-term weakness, Bitcoin’s long-term outlook remains supported by institutional interest.
Spot Bitcoin exchange-traded funds recorded $524 million in cumulative net inflows on Tuesday — the highest daily total since early October.
The renewed ETF activity suggests that investors are gradually rebuilding exposure to Bitcoin after the volatility seen earlier this month.
With the Federal Reserve expected to provide new policy guidance later this month, any hint of a dovish stance could reignite demand for risk assets, including cryptocurrencies.
If market volatility stabilizes and government operations resume smoothly, Bitcoin may regain upward momentum as investors seek diversification beyond equities.
