#PartialGovernmentShutdownEnds

The Partial Government Shutdown Ends – the brief but disruptive partial U.S. federal government shutdown has officially ended as of February 3, 2026, with President Donald Trump signing a major funding bill into law. Here's a detailed, in-depth breakdown in English, covering the timeline, key events, impacted areas, back pay for workers, volume of funding, economic/market implications (including price/liquidity effects), political dynamics, and what comes next—plus a deep dive into the crypto market reaction.
Timeline & Key Events
Shutdown Start: Funding lapsed at midnight ET on January 31, 2026 (Saturday), after a prior continuing resolution expired. This triggered a partial shutdown affecting roughly half of federal departments/agencies.
Duration: Just 3-4 days (from January 31 to February 3, 2026) – one of the shortest in recent history.
Senate Action: Passed a revised funding package on January 30, 2026 (71-29 vote), but the House delayed reconvening until February 2 due to weekend/holiday scheduling.
House Passage: On February 3, voted 217-214 (narrow margin; 21 Republicans opposed, 21 Democrats supported bipartisan deal).
President Signs: Trump signed the bill Tuesday afternoon (February 3, 2026), calling it a "great victory for the American people." Agencies began reopening immediately, with most federal workers returning Wednesday (February 4).
Current Status (as of early February 5, 2026): Government largely back to normal operations.
What the Funding Bill Includes (Volume & Scope)
Total Funding Package: Roughly $1.2 trillion in appropriations.
Full-Year Funding (through September 30, 2026): Covers five major appropriations bills for Defense, Labor-HHS-Education, Transportation-HUD, State and Foreign Operations, Financial Services and General Government (including Treasury).
Partial/Short-Term Funding: Department of Homeland Security (DHS) funded only through February 13, 2026 (two-week continuing resolution/CR). This sets up a new "funding cliff" for negotiations on immigration enforcement restrictions.
Back Pay for Furloughed Workers: Legislation secures retroactive pay for affected federal employees (furloughed starting Monday, February 2). OPM guidance confirms Congress mandated this—no loss of pay for the short lapse.
Impacted vs. Unaffected Areas
Partial Shutdown Hit: Defense (some functions), Labor-HHS-Education, Transportation-HUD, State, Treasury, Judiciary, Executive Office, District of Columbia funding. Non-essential operations halted; ~hundreds of thousands furloughed temporarily.
Essential/Unaffected: US Postal Service, Veterans Affairs, Agriculture, Commerce, Interior, EPA, Energy, Justice, NASA, Congress/US Capitol Police. National parks, air traffic control, Social Security payments, etc., largely continued.
Minimal Disruption Overall: Short duration limited chaos—no widespread closures or major service halts like in longer shutdowns.
Economic & Market Implications (Price, Liquidity, Volume)
Market Reaction: Stocks showed limited volatility due to the brief nature. Major indices (S&P 500, Dow) saw minor dips during the lapse but quick recovery post-resolution—no sustained sell-off. Bond yields stable; Treasury liquidity remained high.
Percentage Impact: Shutdown affected <1% of overall U.S. economic activity in such a short window. No measurable GDP drag reported yet.
Liquidity Effects: Federal borrowing/payments unaffected for essentials. Short-term Treasury market liquidity stayed robust; no spike in funding stress.
Crypto Market During the Partial Shutdown (Jan 31 – Feb 3, 2026)
The brief partial shutdown triggered immediate risk-off sentiment across global markets, including crypto. Uncertainty from delayed economic data, halted regulatory progress at the SEC/CFTC, and fears of prolonged fiscal chaos amplified volatility. Crypto reacted sharply—often more aggressively than stocks.
Key Impacts on Prices & Percentages:
Bitcoin (BTC): Dropped from around $83,000 pre-shutdown levels to intraday lows near $72,800 on Feb 3—a decline of ~12-14% from recent highs in that window. Hit lowest since November 2024.
Ethereum (ETH): Fell harder, dropping toward $2,150–$2,200 range—down ~7-9% in 24 hours at peaks of panic and ~26% over the past week in some reports.
Other Majors: XRP, Solana (SOL), and altcoins saw similar or steeper losses (SOL down ~5-10% daily at times), with broader market cap shedding billions temporarily.
Overall Market Sentiment: Shifted to "Extreme Fear" on fear/greed indices.
Liquidations & Volume Surge:
Over $1.68 billion in total crypto liquidations on Jan 30 alone (pre-full lapse), with longs accounting for ~93%. On Tuesday (Feb 3), another $740 million in 24-hour liquidations (mostly longs).
Trading volume exploded on futures/spot exchanges—high volume on downside candles indicated forced selling and panic exits.
Liquidity & ETF Flows:
Bitcoin Spot ETFs: Heavy outflows ($272 million in one session), led by Fidelity's FBTC ($149 million).
Altcoin ETFs (ETH, SOL, XRP): Modest inflows (~$14M ETH, $1.24M SOL, $19M XRP), hinting at early capital rotation.
Liquidity thinned in spot markets during peak uncertainty, widening bid-ask spreads.
Why Crypto Got Hit Hard:
Political uncertainty amplified macro fears.
Crypto's correlation with risk assets led to synchronized sell-offs.
Leverage-heavy structure caused cascading liquidations.
Crypto Market After Shutdown Ends (Post-Feb 3 Signing)
Trump signed the bill on Feb 3 afternoon, reopening most agencies immediately (full operations by Feb 4). This eased near-term uncertainty and triggered a relief bounce.
Price Recovery & Changes:
Bitcoin: Rebounded sharply from $72,800 low to around $74,800–$76,000+ post-signing (up ~3-5% intraday from bottom). Still down ~3-4.5% over 24 hours at peaks of relief, but erased much of the Tuesday free-fall.
Ethereum: Recovered to ~$2,180–$2,260 range (up from lows).
Broader Market: Majors saw partial green candles; overall crypto market cap stabilized.
Liquidations Reversal & Volume:
Short-covering and dip-buying kicked in—liquidations flipped toward shorts in recovery phase.
Volume remained elevated but shifted bullish.
Liquidity & Flows Update:
ETF outflows slowed or reversed modestly.
Liquidity improved quickly—tighter spreads, renewed institutional interest expected as agencies resume full ops.
Forward Outlook & Caveats:
Quick resolution minimized damage—seen as "political noise."
Lingering Risks: DHS funding cliff on Feb 13—another lapse could reignite uncertainty.
Crypto remains macro-sensitive—politics/Fed expectations drive flows.
Bottom Line on Crypto
During the shutdown: Sharp risk-off sell-off, heavy liquidations (~$ billions total), BTC/ETH down 10-25% in panic phases, ETF outflows, volume spikes on fear.
After end: Relief rally paused the free-fall, BTC rebounding 3-5%+ from lows, improved liquidity, short-covering. Full recovery depends on no DHS relapse and macro stability.