- Bitcoin traded above $107K Sunday as focus turned to U.S. fiscal coverage and Trump’s “Big Beautiful Bill.”
- Trump urged “cost cutting Republicans” to not “go too crazy,” promising progress will “make it all up.”
- Expectations of sustained deficits and free fiscal coverage are bolstering the bull case for exhausting property like BTC and gold.
Bitcoin traded steadily above the $107,000 mark on Sunday, with market consideration more and more targeted on fiscal coverage tensions brewing in Washington.
A latest social media submit from President Donald Trump, aimed toward quelling dissent inside his personal celebration over an enormous tax-and-spending package deal, has inadvertently bolstered the bullish case for property like Bitcoin and gold, which are sometimes seen as hedges towards fiscal profligacy.
The most recent market actions come as Bitcoin was altering fingers at $107,937 as of twenty-two:22 UTC on Sunday, up 0.54% over the previous 24 hours.
Value motion remained unstable, with the cryptocurrency fluctuating between $107,194 and $108,489 throughout that window, in accordance with CoinDesk Analysis’s technical evaluation mannequin.
The main target shifted to US fiscal coverage following a pointed message from President Trump on his Fact Social platform on June 29, 2025.
Addressing Republican lawmakers amid a fierce inner debate over his sweeping legislative package deal, Trump wrote:
For all price reducing Republicans, of which I’m one, REMEMBER, you continue to should get reelected. Don’t go too loopy! We are going to make all of it up, occasions 10, with GROWTH, greater than ever earlier than.
This assertion lays naked the deep divisions inside the Republican celebration because it struggles to unify behind the formidable laws, which has been dubbed the “One Big Beautiful Bill.”
The invoice itself, exceeding 900 pages, is a fancy mixture of fiscal measures.
It combines roughly $3.8 trillion in tax cuts with focused spending reductions and elevated funding for protection and border safety.
A key part is the purpose to make everlasting most of the tax breaks from Trump’s 2017 Tax Cuts and Jobs Act, together with the elimination of taxes on ideas, time beyond regulation pay, and sure auto loans.
The kid tax credit score would additionally rise to $2,200 beneath the Senate model, whereas deductions for seniors could be briefly elevated.
To offset the price of these tax cuts, nonetheless, Republicans have proposed important cuts to Medicaid and vitamin applications, a transfer that has sparked intense debate inside the celebration.
Navigating a political tightrope
The trail to passing the invoice is fraught with political challenges.
Reasonable Republicans, significantly these from high-tax states, are pushing for a better cap on state and native tax (SALT) deductions.
In distinction, conservative factions are demanding deeper and extra in depth spending cuts, with a specific concentrate on Medicaid.
These inner disagreements are complicating efforts to safe the slender Republican majorities wanted in each the Home and the Senate to go the laws, which faces uniform opposition from Democrats, who argue it disproportionately favors the rich and can worsen financial inequality.
President Trump’s social media message seems to be an try to stroll this political tightrope.
He’s urging a level of fiscal restraint to appease conservatives whereas concurrently emphasizing a supply-side financial argument: that sturdy financial progress will finally compensate for near-term income losses and assist cut back deficits over time.
This “growth will make it all up” strategy comes as nonpartisan analysts estimate the invoice may add trillions of {dollars} to the already substantial $36.2 trillion nationwide debt.
A bullish sign for Bitcoin and gold?
This fiscal backdrop is being carefully watched by market individuals, with some decoding it as a robust sign for holding exhausting property.
Crypto analyst Will Clemente’s response on the social media platform X (previously Twitter), posted shortly after Trump’s message, captured a standard sentiment amongst these skeptical of present fiscal insurance policies:
How will you learn this and maintain long run US treasuries at present yields lol… Additionally, how will you learn this and never maintain any Bitcoin or gold.
Clemente’s skepticism in the direction of long-term US Treasuries displays a rising concern that the invoice’s deficit-financed tax cuts and comparatively modest spending reductions sign a free fiscal coverage that might gas inflation and devalue the forex over time.
In such a situation, conventional fixed-income property like Treasuries can change into much less engaging, as rising deficits and potential financial lodging (to finance the debt) threaten to erode the worth of each principal and curiosity funds.
Conversely, exhausting property with restricted provide, reminiscent of gold and Bitcoin, are more and more considered as dependable shops of worth and efficient hedges towards inflation and monetary irresponsibility.
The expectation of sustained, giant deficits and the clear political challenges to implementing significant fiscal self-discipline are bolstering the demand for these inflation-resistant property.
Because the Senate races to finalize the invoice earlier than the July 4 vacation, the continuing negotiations and the last word destiny of this consequential fiscal package deal will proceed to be a key driver of market sentiment.
