Bitcoin Price Poised for 31% Surge as Trump's $4.5 Trillion Bill Advances

Generated by AI AgentCoin World
Friday, Jul 4, 2025 9:02 am ET2min read

Bitcoin's price is poised for a significant increase as Donald Trump's $4.5 trillion fiscal package progresses through Congress. This extensive package, known as the "One Big Beautiful Bill Act," is championed by House Speaker Mike Johnson and aims to boost market liquidity, which could positively impact

and other cryptocurrencies.

Trump has been advocating for reduced crypto regulation, which has encouraged institutional interest in the market. The Senate's approval of the bill brings it closer to finalization, potentially leading to a surge in Bitcoin's price as market liquidity increases. Trump's friendlier tone toward crypto has also contributed to a more positive outlook for the digital asset, with less regulation and clearer rules making big companies feel safer about adding Bitcoin to their portfolios.

The direct effect of the act could see Bitcoin's price jump, supported by institutional buying that exceeds miner supply. Positive implications are anticipated for risk assets, notably Bitcoin, which surged 3% following the announcement of the bill. Financial analysts predict potential upward trends in cryptocurrencies as macro liquidity increases, potentially reflecting in Bitcoin and correlated assets like

. Community sentiment is broadly bullish, predicated on institutional backing.

Historically, Bitcoin has rallied after macroeconomic events, averaging 31% gains in 50 days following significant global shocks. For instance, post the US-Israel-Iran conflict in June 2025, Bitcoin rebounded significantly in under a month. Experts forecast a similar trend, suggesting Bitcoin might rise to $136,000 based on current activity and liquidity forecasts. Analysts highlight institutional demand as a factor supporting price growth, conditioned on the bill's legislative success.

The recent surge in Bitcoin's value is closely tied to the ongoing negotiations surrounding the U.S. fiscal package, which has sparked significant interest and speculation within the cryptocurrency market. The anticipated spending bill is expected to inject substantial liquidity into the economy, potentially reshaping regulatory frameworks and increasing interest in digital assets. This economic climate, characterized by increased national debt, has historically been favorable for Bitcoin, as investors seek alternative stores of value.

The passage of the fiscal package through the House, with a vote of 218 to 214, has further boosted market sentiment. The bill, which extends tax cuts and slashes social safety net programs, is part of a broader economic policy shift aimed at stimulating growth. However, the absence of tax relief for the crypto ecosystem highlights a lack of regulatory clarity, which could perpetuate existing financial constraints on digital assets.

Despite the positive market sentiment, the lack of specific tax provisions for stakers, miners, and retail users of digital assets has led to some disappointment within the crypto community. Pro-crypto lawmakers had hoped to include provisions that would benefit these stakeholders, but their efforts were not successful. This regulatory uncertainty could impact the long-term growth and adoption of cryptocurrencies, as investors and businesses may be hesitant to engage in a market with unclear guidelines.

The surge in Bitcoin's value, reaching above $109,000, reflects the broader market's response to the fiscal package and the potential for increased liquidity. However, the lack of regulatory clarity and specific tax provisions for the crypto ecosystem could temper this enthusiasm in the long run. As negotiations continue and the fiscal package moves through the legislative process, the cryptocurrency market will be closely watching for any developments that could impact its future trajectory.

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