When politics and liquidity meet, crypto reacts faster than any other asset class.

On November 10, 2025, as Congress moved toward finalizing a deal to reopen the federal government, Bitcoin surged past $105,000, briefly touching $106,000 — its highest level in months. For traders watching from both Wall Street and Web3, this wasn’t just a coincidence. It was a signal that macro liquidity is flowing back into the system, and risk assets are breathing again.

The Washington Effect: Why Reopening Matters

The last few weeks of political gridlock had frozen not only government operations but also large portions of fiscal liquidity. Investors were closely tracking progress in the Senate as markets priced in the likelihood of a resolution. The passage of a spending deal means the U.S. Treasury can resume normal operations — including releasing funds that were locked during the shutdown.

That matters because when the Treasury General Account (TGA) builds up, it effectively removes liquidity from the broader financial system. The government holds cash that would otherwise circulate through markets, funds, and even into digital assets. During the shutdown, that drain was visible across equities, crypto, and risk-on sectors. As soon as signals of reopening appeared, liquidity expectations flipped — and Bitcoin responded instantly.

The market doesn’t wait for liquidity to arrive; it trades on the expectation of it. That’s why we saw Bitcoin jump 4% in 24 hours and ETH reclaim the $3,000 level within the same window. The political resolution acted as a macro relief valve, and crypto, as always, was first to price it in.

Liquidity, Risk Sentiment, and the Crypto Reflex

Crypto is uniquely sensitive to global liquidity conditions because it sits at the frontier of speculative capital. Traditional investors often reduce exposure when macro uncertainty spikes — like during a shutdown — but as soon as conditions normalize, the crypto reflex kicks in: traders rotate back into BTC, then ETH, then into riskier tokens and meme plays.

This time, though, there’s an additional layer. Web3’s infrastructure has matured since previous cycles. Institutional desks are active through ETF products, multi-chain liquidity aggregators have lowered friction, and AI-driven analytics platforms such as Ave.ai make it easier to detect early movements across wallets, networks, and new listings.

When liquidity re-enters the system, it doesn’t just push up Bitcoin; it amplifies on-chain velocity — the rate at which capital moves between wallets, DEXs, and ecosystems. Early signs of that were already visible as traders on Solana, Base, and BNB Chain began rotating into mid-cap narrative tokens following the BTC spike.

What Ave.ai’s On-Chain Data Shows

Ave.ai’s multi-chain dashboards, which aggregate data from 130+ blockchains and 300+ DEXs, highlight a clear pattern: as macro sentiment improved, smart-money wallets and large-cap traders began repositioning days before the news broke. Transaction clusters show accumulation patterns across Bitcoin-pegged assets, ETH-based perpetuals, and even new meme coins.

The AI signal layer — which tracks wallet clusters, token holder concentration, and liquidity inflows — showed rising activity on Sunday evening (U.S. time), just as rumors of a Senate deal began circulating. That’s consistent with previous macro events, where well-informed wallets move first, retail follows, and liquidity cascades into altcoins over the next 48–72 hours.

Ave’s Alpha Signal Center also flagged a spike in “smart inflows” — wallets tied to previously profitable addresses — entering positions in BTC derivatives and cross-chain liquidity pools. These shifts suggest that macro sentiment wasn’t the only driver; on-chain conviction was building before the headline even hit mainstream media.

The Macro-On-Chain Feedback Loop

What makes this government deal fascinating for Web3 analysts is the feedback loop it creates between macro policy and on-chain behavior.

When fiscal spending resumes, it adds liquidity to the market. That liquidity, in turn, supports risk appetite. In traditional markets, that means higher equity valuations. In crypto, it means more trading volume, higher DEX activity, and capital rotation into new narratives — from DeFi and Restaking to MemeFi and AI tokens.

Each layer of liquidity movement triggers new on-chain signals. For instance, when Treasury spending ramps up, stablecoin minting on Ethereum and Tron often accelerates, reflecting demand for on-chain liquidity instruments. From there, capital flows into CEX/DEX pairs, increasing slippage and creating arbitrage windows — the kind of micro-volatility that algorithmic traders and signal-based wallets thrive on.

Platforms like Ave.ai help decode this complexity. By tracking wallet interactions, pool depth, and token velocity, they allow traders to see how macro headlines evolve into micro-trades — from Senate votes to whale buys.

The New Phase: Data-Driven Conviction

For many traders, $105K Bitcoin isn’t the end of a rally — it’s the confirmation that the next liquidity cycle is beginning. With the U.S. government reopened, fiscal injections restarting, and investor risk tolerance recovering, the crypto market is again positioned to benefit from the intersection of policy and technology.

But this cycle is different. The market isn’t just chasing price; it’s analyzing data. Smart traders now combine macro cues (like TGA flows) with on-chain indicators (like wallet clustering and token rotation) to anticipate market direction. AI-powered platforms such as Ave.ai are at the center of that evolution — compressing what used to take hours of manual analysis into seconds of real-time insight.

The convergence of macro liquidity and data intelligence defines the new crypto edge. Those who can interpret both — the fiscal signals from D.C. and the token movements on-chain — will lead the next wave of profitable trades.

Final Thoughts

The government reopening may seem like a mundane political headline, but in the world of digital assets, it’s a signal with far-reaching impact. It restores liquidity, reduces uncertainty, and reignites the flow of capital that fuels crypto innovation.

From a market perspective, the move through $105K is less about short-term speculation and more about validation — that Bitcoin and the broader crypto ecosystem now trade as macro-sensitive, globally integrated assets.

For Web3 builders, it’s a reminder that decentralized markets don’t exist in isolation. For traders, it’s a cue to prepare for volatility, opportunity, and renewed inflows.

And for data-driven platforms like Ave.ai, it’s the start of a new season — one where macro meets micro, and intelligence defines alpha.

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Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Cryptocurrency trading involves significant risk. Always conduct your own research before making any investment decisions.

The U.S. Government Deal Could Ignite the Next Crypto Rally was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.