Bitcoin Surges 10% as Trump Bill, Rate Cuts Fuel Crypto Rally

Bitcoin and most crypto tokens are experiencing a surge today, which could indicate the start of a new bull run in the crypto market. Bitcoin (BTC) has risen above the key resistance level of $110,000 for the first time in nearly a month, with altcoins such as Fartcoin (FARTCOIN), Dogwifhat (WIF), and Celestia (TIA) also seeing significant gains.

One of the potential catalysts for this rally is the renewed optimism surrounding the passage of Donald Trump’s Big Beautiful Bill by the House of Representatives. The Senate approved its version earlier this week, and negotiations are reportedly underway with holdouts in the House. This bill is seen as positive for Bitcoin, which is increasingly viewed as a safe-haven asset. With the bill expected to significantly boost U.S. debt, many investors may turn to Bitcoin for protection, as predicted by BlackRock. Additionally, the bill includes tax cuts, such as exemptions for tips and overtime pay, which could flow into the stock and crypto markets, as seen during the COVID-19 pandemic.

Another factor driving the rally is the expectation that the Federal Reserve will cut interest rates later this year. Goldman Sachs analysts forecast cuts in September, November, and December, while Morgan Stanley predicts seven rate cuts in 2026. Crypto assets tend to perform well in falling rate environments. During the pandemic, Bitcoin and most altcoins soared to record highs as the Fed slashed rates to zero. Those gains were later erased in 2022 as interest rates rose sharply in response to inflation.

Institutional interest in Bitcoin and altcoins is also on the rise. Spot Bitcoin and Ethereum ETFs continue to attract inflows from U.S. investors. Bitcoin ETFs are nearing $50 billion in cumulative inflows, while Ethereum ETFs have surpassed $4.25 billion. Additionally, more companies are adding Bitcoin and other cryptocurrencies to their balance sheets. Strategy, Mara, and MetaPlanet are among the most notable. According to the analyst's forecast, the sustained institutional interest, especially from public companies purchasing Bitcoin as a treasury asset, is a powerful signal of long-term conviction.

Finally, the rally in Bitcoin and altcoins is also being driven by growing regulatory clarity. The GENIUS Act is expected to become law in the United States, and the Securities and Exchange Commission has recently signaled a more supportive stance toward the decentralized finance sector. This shift could encourage more institutional and retail investors to enter the market.

In summary, the surge in Bitcoin and other cryptocurrencies today can be attributed to several factors, including renewed optimism surrounding the passage of Donald Trump’s Big Beautiful Bill, expectations of Federal Reserve interest rate cuts, increased institutional interest, and growing regulatory clarity. These factors are likely to continue driving the crypto market in the coming months, potentially leading to a new bull run.