Bitcoin rises above $107K as Trump’s fiscal policy comments boost hard assets

Bitcoin traded above $107K Sunday as focus turned to U.S. fiscal policy 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 policy are bolstering the bull case for hard assets like BTC and gold.

Bitcoin traded steadily above the $107,000 mark on Sunday, with market consideration more and more centered on fiscal policy tensions brewing in Washington.

A latest social media submit from President Donald Trump, aimed toward quelling dissent inside his personal social gathering over an enormous tax-and-spending package deal, has inadvertently bolstered the bullish case for assets 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.

Price motion remained risky, with the cryptocurrency fluctuating between $107,194 and $108,489 throughout that window, in line with CoinDesk Research’s technical evaluation mannequin.

The focus shifted to US fiscal policy following a pointed message from President Trump on his Truth 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 slicing Republicans, of which I’m one, REMEMBER, you continue to need to get reelected. Don’t go too loopy! We will make all of it up, instances 10, with GROWTH, greater than ever earlier than.

This assertion lays naked the deep divisions throughout the Republican social gathering as it struggles to unify behind the bold 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 element 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 suggestions, extra time pay, and sure auto loans.

The little one tax credit score would additionally rise to $2,200 beneath the Senate model, whereas deductions for seniors could be quickly elevated.

To offset the price of these tax cuts, nevertheless, Republicans have proposed important cuts to Medicaid and diet applications, a transfer that has sparked intense debate throughout the social gathering.

Navigating a political tightrope

The path to passing the invoice is fraught with political challenges.

Moderate 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 selected deal with Medicaid.

These inner disagreements are complicating efforts to safe the slim Republican majorities wanted in each the House 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 is urging a level of fiscal restraint to appease conservatives whereas concurrently emphasizing a supply-side financial argument: that strong financial progress will in the end compensate for near-term income losses and assist scale back deficits over time.

This “growth will make it all up” method 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 intently watched by market members, with some deciphering it as a robust sign for holding hard assets.

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 are you able to learn this and maintain long run US treasuries at present yields lol… Also, 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 policy that might gasoline inflation and devalue the foreign money over time.

In such a situation, conventional fixed-income assets like Treasuries can turn out to be 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, hard assets with restricted provide, such as gold and Bitcoin, are more and more seen as dependable shops of worth and efficient hedges in opposition to inflation and fiscal irresponsibility.

The expectation of sustained, massive deficits and the clear political challenges to implementing significant fiscal self-discipline are bolstering the demand for these inflation-resistant assets.

As 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.