XRP and DOGE Surge as U.S. Shutdown and Japan Bond Market Fuel Bitcoin Demand

Digital assets demonstrated resilience this week despite a U.S. government shutdown and mounting stress in Japan's bond market, with traders anticipating looser global liquidity conditions. The potential delay of Friday's U.S. payrolls report and Japanese yields reaching their highest levels since 2008 suggest crypto markets may be decoupling from broader macroeconomic caution. This environment has fueled expectations that policymakers could be compelled to ease financial conditions, creating a more favorable backdrop for risk assets. "The U.S. government shutdown and weak ADP employment data have influenced markets recently. Traders believe these factors could prompt the Fed to stimulate the economy through rate cuts later this year, potentially boosting both stocks and cryptocurrencies," stated Jeff Mei, COO at BTSE, in a Telegram message to CoinDesk. Data delays from government shutdowns and reduced fiscal visibility often lead central banks to adopt more cautious approaches, while rising yields in Japan indicate potential policy shifts with global funding market implications. For cryptocurrency markets, these dynamics have sparked speculation about new capital inflows and renewed appetite for volatility. Bitcoin traded near $118,700 with over 3% gains in 24 hours, while ether climbed 5.6% to $4,374. Solana added nearly 7% reaching $223, and dogecoin surged almost 9% to $0.25, continuing its strong performance among major cryptocurrencies. XRP stabilized at $2.97 after experiencing volatility around the $3.00 level earlier in the week. The broad rally increased the total market capitalization of all digital assets to over $2.37 trillion according to CoinMarketCap data. Market stability is further supported by volatility metrics. "The dominant theme this quarter is lower implied volatilities across equities, rates, FX, and even BTC. This stems from collapsed realized volatilities due to an accommodative Fed, stabilizing global GDP, minimal tariff impacts on CPI readings, and reduced geopolitical surprises," explained Augustine Fan, Head of Insights at SignalPlus, via email. With bitcoin consolidating below $119,000 and dogecoin advancing, the coming weeks will determine whether current momentum can persist or whether renewed pressure from U.S. and Japanese policymakers will challenge crypto's decoupling trend.