Bitcoin Surges 60% to $117,080 Amid U.S. Dollar Decline

Bitcoin has reached an unprecedented milestone, surpassing $117,000 for the first time in its history, marking a more than 60% increase from its lowest point in April. The exact figure stands at $117,080. Concurrently, Ether briefly touched $3,000 before slightly rebounding to $2,800. XRP also experienced a surge, rising by 5% to $2.60.

This rally coincides with a significant decline in the U.S. Dollar, which has seen its steepest six-month fall since 1973, dropping nearly 11%. This decline is concurrent with a rally in tech stocks, notably led by Nvidia, which recently became the first company to hit a $4 trillion market capitalization. The timing of Bitcoin’s price actions aligns with new warnings about U.S. debt, fiscal chaos, and an economy showing signs of slipping.

In early April 2025, Bitcoin was on a downward trajectory as markets prepared for another global trade war. On April 9th, the White House announced a 90-day delay on tariffs, which coincided with Bitcoin hitting its lowest point that day. Two weeks later, on April 20th, Bitcoin suddenly began a sustained upward trend without any significant market-moving headlines, suggesting deeper underlying factors driving the rebound.

The U.S. government recently raised the debt ceiling by $5 trillion, bringing it to $41.1 trillion. Currently, the national debt is around $37 trillion. If current trends continue, the debt ceiling will be reached again in under three years, raising concerns about the fiscal health of the nation.

On April 22nd, Elon Musk announced his resignation from the Department of Government Efficiency, also known as DOGE. This announcement, just two days after the rally began, was seen as a sign of worsening fiscal conditions in Washington. Musk's exit was followed by a public dispute with President Donald Trump, who returned to the White House after the 2024 election. This conflict was not merely personal but also political, as Trump pushed Congress to pass the “Big Beautiful Bill” (OBBB), which is projected to add $5.5 trillion to the national debt if made permanent. As discussions about the bill intensified, Bitcoin's price continued to rise.

The timeline of Bitcoin’s price movements closely mirrors the progress of the OBBB. On June 22nd, Bitcoin briefly dipped below $100,000, but by July 1st, as analysts increased the likelihood of the OBBB passing, the price began to rise again. On July 3rd, the House approved the bill, and by July 4th, Trump had signed it into law. That same week, Bitcoin surpassed $117,000, while the U.S. Dollar Index fell to levels not seen since March 2022.

The U.S. Dollar's decline is unprecedented, dropping 10.8% in the first half of 2025, its worst performance to start a year since 1973. Despite ongoing tariff campaigns by the Trump administration, the dollar continues to fall. Normally, such aggressive trade policies would boost the dollar, but the current economic conditions are overriding these effects. The Federal Reserve has maintained a hard line, with the latest FOMC minutes indicating no rate cuts are expected in 2025, suggesting interest rates will remain higher for longer. However, the dollar continues to weaken, largely due to the debt crisis.

Elon Musk recently launched his new “America Party” and, when asked about Bitcoin support, responded, “Fiat is hopeless, so yes.” This statement underscores the growing sentiment that traditional fiat currencies are facing significant challenges, further driving interest in cryptocurrencies like Bitcoin.