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\n\t\t\t\t\t\t\t\t\tBitcoin dipped to $72.8K during U.S. shutdown fears, then rebounded sharply after lawmakers passed a funding bill.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Bitcoin (BTC) slid to around $72,800 yesterday as U.S. lawmakers debated a stopgap funding package before rebounding once the House passed the bill on February 4, 2026, easing fears of a government shutdown.<\/p>\n
The quick turnaround showed how closely crypto prices still track U.S. political risk, even when no blockchain-specific news is involved.<\/p>\n
According to a February 4 post by on-chain analytics firm Santiment, the sell-off unfolded<\/a> during U.S. trading hours while headlines pointed to a tight vote in the House. As uncertainty built, BTC quickly fell, triggering about $30 million in DeFi liquidations and mirroring a synchronized drop in the S&P 500 and even gold, an asset typically viewed as a safe haven.<\/p>\n This correlation indicates traders were reducing exposure to volatile assets broadly due to the political standoff, not crypto-specific news.<\/p>\n The concern centered on whether Congress would approve a roughly $1.2 trillion funding package to keep most federal agencies running through September 30. Failure would have led to a partial shutdown, delaying economic data and adding stress to an already cautious market.<\/p>\n The tense vote saw Republican divisions, with one representative voting against the bill due to foreign aid provisions.<\/p>\n However, the bill ultimately passed, averting a shutdown and causing markets to respond with immediate relief. Bitcoin bounced from its lows, climbing over 5% within hours, and the S&P 500 also recovered. According to Santiment, the speedy recovery showed that fears of political dysfunction, rather than a fundamental reevaluation of Bitcoin\u2019s value, were behind the earlier sell-off.<\/p>\n While the funding bill news provided a clear short-term catalyst, Bitcoin is still facing broader headwinds. Per data from CoinGecko, the asset is down nearly 14% in the last seven days and 17% for the month.<\/p>\n A recently published analysis from Galaxy Digital pointed<\/a> to deteriorating on-chain metrics, with research head Alex Thorn noting that 46% of Bitcoin\u2019s circulating supply is now \u201cunderwater,\u201d meaning it was last moved at higher prices, which can increase selling pressure. He also pointed out that there was a lack of significant accumulation by large holders.<\/p>\n Furthermore, on February 3, reports that Iran was seeking to shift the format of nuclear talks with the U.S. contributed to another leg down in Bitcoin\u2019s price, pushing<\/a> it below $75,000 and burning at least $20 million worth of derivative positions.<\/p>\n Additionally, some analysts like Doctor Profit have revised their downside targets, saying the cycle bottom could hit a range between $44,000 and $54,000. However, the key question is whether the resolution of the immediate U.S. political risk will be enough to reverse these negative technical and on-chain trends, or if BTC is still vulnerable to a deeper test of support.<\/p>\nYou may also like:<\/h3>\n
Broader Pressures on Bitcoin\u2019s Price<\/h2>\n
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