- Bitcoin traded above $107K Sunday as focus turned to U.S. fiscal coverage and Trump’s “Huge Stunning Invoice.”
- Trump urged “value reducing Republicans” to not “go too loopy,” promising progress will “make all of it up.”
- Expectations of sustained deficits and unfastened fiscal coverage are bolstering the bull case for arduous belongings like BTC and gold.
Bitcoin traded steadily above the $107,000 mark on Sunday, with market consideration more and more centered on fiscal coverage tensions brewing in Washington.
A current social media put up from President Donald Trump, geared toward quelling dissent inside his personal social gathering over an enormous tax-and-spending bundle, has inadvertently bolstered the bullish case for belongings like Bitcoin and gold, which are sometimes seen as hedges in opposition to fiscal profligacy.
The newest 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.
Worth motion remained unstable, with the cryptocurrency fluctuating between $107,194 and $108,489 throughout that window, in keeping with CoinDesk Analysis’s technical evaluation mannequin.
The main focus shifted to US fiscal coverage following a pointed message from President Trump on his Reality Social platform on June 29, 2025.
Addressing Republican lawmakers amid a fierce inside debate over his sweeping legislative bundle, Trump wrote:
For all value reducing Republicans, of which I’m one, REMEMBER, you continue to need to get reelected. Don’t go too loopy! We’ll make all of it up, occasions 10, with GROWTH, greater than ever earlier than.
This assertion lays naked the deep divisions throughout the Republican social gathering because it struggles to unify behind the bold laws, which has been dubbed the “One Huge Stunning Invoice.”
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 element is the goal 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, additional time pay, and sure auto loans.
The kid tax credit score would additionally rise to $2,200 underneath the Senate model, whereas deductions for seniors could be briefly elevated.
To offset the price of these tax cuts, nevertheless, Republicans have proposed vital cuts to Medicaid and vitamin packages, a transfer that has sparked intense debate throughout the social gathering.
Navigating a political tightrope
The trail to passing the invoice is fraught with political challenges.
Reasonable Republicans, notably 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 selected deal with Medicaid.
These inside disagreements are complicating efforts to safe the slim Republican majorities wanted in each the Home and the Senate to cross 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 and 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 “progress will make all of it up” method comes as nonpartisan analysts estimate the invoice might 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 intently watched by market individuals, with some decoding it as a robust sign for holding arduous belongings.
Crypto analyst Will Clemente’s response on the social media platform X (previously Twitter), posted shortly after Trump’s message, captured a typical sentiment amongst these skeptical of present fiscal insurance policies:
How are you going to 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 unfastened fiscal coverage that would gas inflation and devalue the forex over time.
In such a state of affairs, conventional fixed-income belongings like Treasuries can develop into much less enticing, as rising deficits and potential financial lodging (to finance the debt) threaten to erode the worth of each principal and curiosity funds.
Conversely, arduous belongings with restricted provide, equivalent to gold and Bitcoin, are more and more seen as dependable shops of worth and efficient hedges in opposition to inflation and financial 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 belongings.
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 bundle will proceed to be a key driver of market sentiment.
