Gold Rises Above $4000 as U.S. Approaches Agreement to Resolve Shutdown – Will Bitcoin Respond?

Gold futures soared beyond $4,000 per ounce on Monday as the U.S. Senate moved forward with a bipartisan agreement to conclude the 40-day government shutdown.

In the meantime, Bitcoin rose from $100,000 to approximately $106,000, fueled by the belief that the reopening of the federal government signals a return to deficit spending and monetary expansion.

Source: TradingView

The breakthrough occurred after eight Democratic senators broke ranks to endorse a compromise that would reopen federal operations through January, reverse layoffs caused by the shutdown, and ensure back pay for furloughed employees.

Nevertheless, significant disagreements persist regarding healthcare tax credits, which are set to expire in December.

President Donald Trump confirmed late Sunday that “we are getting close to the shutdown ending,” shortly after Treasury Secretary Scott Bessent cautioned that the economic repercussions would only worsen without a resolution.

.@POTUS: “It looks like we’re getting close to the shutdown ending. You’ll know very soon.” pic.twitter.com/Qp2qR1DeaF

— Rapid Response 47 (@RapidResponse47) November 10, 2025

The shutdown, which commenced on October 1 due to disagreements among lawmakers over funding for the new fiscal year, disrupted welfare benefits for over 40 million Americans dependent on SNAP assistance and compelled airlines to cancel more than 2,700 flights on Sunday alone.

Market Rally Reflects Return to Deficit Spending

Spot gold increased nearly 3% to surpass $4,113 per ounce, reaching its highest point since October 27, while U.S. gold futures climbed to $4,089.

Peter Schiff remarked that the rally across equities, precious metals, and Bitcoin signifies “it’s back to business as usual in Washington, D.C.,” where “deficits and inflation will rise, and investors will continue to seek alternatives to depreciating U.S. dollars.“

The dollar index decreased by 0.1%, making gold more accessible for international buyers amid rising concerns regarding U.S. economic data.

News that the government shutdown is ending sent stock futures, gold, silver, and Bitcoin rallying. The deal means it’s back to business as usual in Washington, D.C. Deficits and inflation will rise, and investors will continue to seek alternatives to depreciating U.S. dollars.

— Peter Schiff (@PeterSchiff) November 10, 2025

Market participants currently perceive a 65% chance of a Federal Reserve rate cut in December, following disappointing employment figures for October and a drop in consumer sentiment to its lowest level in nearly three and a half years.

Ray Dalio addressed the broader debt crisis at the Greenwich Economic Forum, explaining that “when you reach a point in this cycle where debt is required to pay off debt and compounds, it becomes a problem for central banks as well.”

He pointed out that central banks losing money on debt holdings encounter “asset liability problems” and must “essentially monetize the other government’s debt,” leading to “a dissolution, deterioration in the monetary order.”

Ray Dalio: “Countries are letting their reserves or assets go down and acquiring gold.”
This is what happens in monetary resets…
pic.twitter.com/8lYgrsO9HU

— Gold Telegraph (@GoldTelegraph_) November 9, 2025

Central banks acquired a record 220 tons of gold in Q3 2025, indicating a shift away from U.S. Treasuries due to increasing global debt and geopolitical tensions.

Bitcoin Positioned as Digital Alternative to Gold

Coinbase CEO Brian Armstrong stated, “It’s clear at this point that Bitcoin is a better form of money than gold” during a discussion at the World Economic Forum.

He contended that Bitcoin “is provably scarce, just like gold, but it’s more portable and divisible so you can actually use it,” while emphasizing that it “has higher utility” and “was the best performing asset over the last 10 years.”

Source: NewHedge

Armstrong anticipated that governments might begin with Bitcoin representing “1% of their reserves, but I believe over time it’ll equal or exceed gold reserves.”

However, tech investor Balaji Srinivasan noted yesterday that “the S&P 500 is up in nominal terms, flat in gold terms, and down in Bitcoin terms,” questioning whether “the Bitcoin to gold exchange rate may become the true price.”

Gold’s 53% year-to-date increase pushed prices above $4,000 per ounce, while Bitcoin’s price, slightly above $100,000, indicated a return of over 390% in three years.

Similar to many other prominent financial experts, Robert Kiyosaki recently reaffirmed his $250,000 Bitcoin target for 2026, asserting that the U.S. Treasury and Federal Reserve “print fake money to pay their bills” while “the USA is the biggest debtor nation in history.”

Bitcoin is currently encountering significant resistance at $110,000 to $111,000 after surpassing $105,000, with analyst Pan C predicting that the recovery will take 1-2 weeks to establish $110,000 as support.

Clear break of $105,000. Next key resistance: $110,000 to $111,000. I called the double bottom, the dip below the 50-Week EMA, and the weekly close above it. I predicted this recovery would take about 1-2 weeks. To me, a recovery means turning $110,000 into support and ranging…

— PlanC (@TheRealPlanC) November 10, 2025

Large liquidity clusters are present at $106,800 on the upside, while downside liquidity has formed at $105,400, $104,000, and $102,200.

U.S. stock futures increased by 0.7% for the S&P 500 and 1.2% for the Nasdaq 100 on Monday morning, while 10-year Treasury yields rose by 0.04 percentage points to 4.14% as markets anticipated that the end of the shutdown would reverse recent safe-haven flows.

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