Washington, D.C. — Bitcoin surged to $107,937 late Sunday, reflecting a 0.54% increase over the past 24 hours, as market attention shifted toward ongoing fiscal policy discussions in the capital. Trading conditions remained turbulent, with Bitcoin experiencing a fluctuation range between $107,194 and $108,489, according to data from CoinDesk Research.
The recent price movements came on the heels of remarks from former President Donald Trump, posted on Truth Social, as he sought to rally Republicans amidst a heated debate regarding his expansive tax-and-spending legislative package. Trump warned GOP lawmakers against straying too far from fiscal conservatism, stating that they still needed to appeal to voters. He emphasized that promising economic growth could offset potential revenue losses from significant proposed tax cuts, reflecting the party’s internal divisions.
The proposed legislation, dubbed the “One Big Beautiful Bill,” spans over 900 pages and aims to blend approximately $3.8 trillion in tax reductions with targeted spending cuts. Key features of the bill include making certain tax breaks from Trump’s 2017 Tax Cuts and Jobs Act permanent, alongside proposed increases in the child tax credit and temporary boosts to senior deductions. However, to counterbalance these tax cuts, the bill also suggests substantial reductions in funding for Medicaid and nutrition programs, igniting fierce disputes among Republican lawmakers.
Moderates from higher-tax states are advocating for an increase in the state and local tax deduction (SALT) cap, while conservative factions are pushing for more drastic cuts, especially in social programs like Medicaid. The struggle to reconcile these differing priorities complicates the passage of the bill, which faces unanimous opposition from Democrats who argue it disproportionately benefits the wealthy and exacerbates economic inequality.
Trump’s assertions aim to strike a delicate balance, calling for fiscal restraint while insisting that economic growth will ultimately mitigate any adverse impacts on government revenue. This approach suggests that anticipated growth could compensate for any short-term rise in the national debt, which analysts estimate may add trillions to the existing total of $36.2 trillion.
Will Clemente, a prominent crypto analyst, underscored market concerns after Trump’s post. He raised questions about the attractiveness of long-term U.S. Treasury bonds under current yields, suggesting that the bill’s proposed tax cuts and minimal spending reductions might lead to a loose fiscal policy that could trigger inflation and lower the currency’s value. This climate has bolstered interest in assets like Bitcoin and gold, which many are increasingly viewing as resilient against inflation and fiscal uncertainty.
With the clock ticking toward a July 4 deadline, legislators are racing to finalize a package that could mark a pivotal point in U.S. fiscal policy. The outcome remains uncertain as politicians grapple with the competing demands of tax relief, spending limitations, and the political realities of garnering necessary support within narrow majorities.
In the cryptocurrency market, Bitcoin’s recent trading patterns reflect broader economic anxieties. The technical analysis indicated a range of movement from $107,194 to $108,489, with established support around $107,300. An influx of trading activity was noted, particularly with a peak volume of 7,538 BTC early in the morning on June 29, signaling strong upward momentum. Despite some late-session volatility that saw a dip back toward $108,000, Bitcoin maintained a resilient stance as the market continues to react to both political and economic signals.