Crypto Prices Surge Today: BTC, ETH, XRP, SOL Soar Despite US Government Shutdown

Crypto prices rallied today amid continued political uncertainty in the United States leading partial government shutdown. Bitcoin, Ethereum, XRP, and Solana recorded an increase in prices.

Moreover, according to CoinMarketCap statistics, total market capitalization increased almost 5%, amounting to $2.38 trillion. All the top ten cryptocurrencies recorded daily profits, even though there was a decrease in their trading volumes.

Crypto Prices Spike On Government Shutdown

At press time, BTC price had risen 1.12% in the last day and stood at $69,777. However, the asset is still underperforming on a monthly basis. Trade volume also declined by 17% to $37.2 billion, indicating a lack of momentum.

Other cryptos recorded increments in prices as Ethereum price was also trading above the $2,000 mark at $2,083. The token increased by 1.19% in 24 hours but recorded a decline of more than 37% per month. Volume decreased to $18.83 billion, a drop of 19% from the previous volume, a proof of low activity in the market.

The XRP price was at $1.47 gaining 4.11% over the same period. The token recorded a small increase in the past week and was down sharply month over month. As CoinGape reported, the XRP price is targeting a breakout above $1.5 due to higher inflows from its spot ETFs.

Solana traded at $88.04, up 4.72% on the day. Weekly performance increased a small margin while monthly fall was more than 40%. All crypto prices recovered after cooler inflation data on the U.S. economy that enhanced risk sentiment.

As indicated by the Consumer Price Index (CPI) report by the U.S. Bureau of Labor Statistics, annual inflation had dropped to 2.4% in January as compared to the 2.7% in December.

Reduction in inflation data lessens the pressure om the Federal Reserve to maintain high interest rates. Consequently, investors are returning to riskier assets such as crypto to earn higher returns.

Inflows into spot ETFs also led to the crypto prices boom. Spot Bitcoin and Ethereum ETFs had net inflows of $15.2 million and $10.26 million, respectively, according to SoSoValue data. This comes after net outflows from the previous day.

Moreover, shorts liquidation assisted in advancing the prices of the major cryptos. According to Coinglass data, there was about $167 million liquidations in the last 24 hours.

The short positions took up the largest share at $124.43 million, which affirmed bearish wipe offs. The number of traders liquidated was 86,890 with the highest liquidation of $4.19 million happening on the ETH/USDT pair on Bitget.

Why The U.S. Government Shuts on Partially

The U.S. government went into partial shutdown earlier today following the expiration of funds. Lawmakers could not agree on a budget, which contributed to the rising policy uncertainty.

It is the second DHS funding lapse in recent weeks, which is a confirmation of ongoing political tensions. As of this writing, the negotiations do not have a definite solution.

The U.S. government shutdown affects agencies such as the TSA, Coast Guard and FEMA. Congress left Washington without a deal and is scheduled to resume on February 23, unless members are called back earlier.