The price of Bitcoin fell to around $72,800 yesterday as the debate in Washington over passing a temporary funding package intensified, then it rebounded after the House approved the bill today February 4, 2026.
The statement eased fears of a partial government shutdown.
This rapid shift highlighted the extent to which cryptocurrency market movements are linked to American political risks, even in the absence of any news directly related to blockchain.
During U.S. trading hours, the drop coincided with headlines about a close vote, prompting traders to reduce their exposure to high-risk assets in general.
According to data from 'Santiment', the decline led to liquidations of about $30 million in the decentralized finance sector, accompanied by a simultaneous drop in the S&P 500 and even gold, indicating that the driver was risk aversion due to political uncertainty more than a factor specific to the cryptocurrency market.
The main concern was the fate of a funding package estimated at about $1.2 trillion aimed at keeping most federal agencies operational until September 30.
If its approval fails, it will lead to a partial shutdown, delays in important economic data, and increased pressure on markets at a time when sentiment is cautious.
Despite divisions within the Republican party and an objection from one representative regarding provisions related to foreign aid, the project ultimately passed, which quickly reflected on the markets; Bitcoin's price rose by more than 5% within hours, and the S&P 500 also recovered.
'Santiment' sees this quick response as supporting the idea that the wave of selling was primarily driven by political fears rather than a fundamental reassessment of Bitcoin's value.
However, Bitcoin remains under broader pressures.
According to data from 'CoinGecko', Bitcoin's price dropped by about 14% over the week and by about 17% over the month.
An analysis from 'Galaxy Digital' also indicated a decline in some network metrics, estimating that 46% of the circulating supply is now 'underwater', meaning it was last moved at higher price levels, which may increase the likelihood of selling pressure, alongside noting the weak accumulation from large holders.
Additionally, reports on February 3 regarding Iran's efforts to change the format of nuclear talks with the United States contributed to another downward wave that pushed the price below $75,000 and led to liquidations in derivatives of no less than $20 million.
In this context, some analysts believe that the cycle's bottom could fall within the range of $44,000 to $54,000, while the most important question remains:
Is the current reduction in political risks enough to reverse the negative trend, or is Bitcoin still at risk of testing deeper support levels?
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