Bitcoin (BTC) Jumps Above $107K as Trump's Fiscal Policy and Lummis's Crypto Tax Bill Boost Bullish Sentiment

According to @FoxNews, Bitcoin (BTC) is experiencing upward momentum, trading at $107,937, driven by two key developments in Washington. First, Senator Cynthia Lummis is pushing a crypto-friendly tax amendment that would waive taxes on crypto transactions under $300 and change the tax rules for staking and mining rewards, taxing them only upon sale, a move supported by industry groups like the Digital Chamber. This could significantly lower the barrier for new crypto users. Second, President Trump's recent comments on Truth Social, suggesting future economic growth will offset budget deficits from his proposed tax cuts, have fueled a bullish case for hard assets. Crypto analyst Will Clemente noted on X that such loose fiscal policy makes inflation hedges like Bitcoin and gold more attractive than U.S. Treasuries. The report's technical analysis confirms bullish short-term signals, with BTC establishing support at $107,300 and trading in a range between $107,194 and $108,489.
SourceAnalysis
US Fiscal Policy and Crypto Tax Clarity Drive Bitcoin (BTC) Volatility
The cryptocurrency market is closely monitoring developments from Washington, where fiscal policy debates and legislative efforts are creating significant trading catalysts. Bitcoin (BTC) experienced a notable uptick, trading at $107,937 as of 22:22 UTC on Sunday, marking a 0.54% gain over 24 hours. This price action comes amidst two powerful narratives: former President Donald Trump’s assertion that economic growth will offset massive deficits, bolstering the case for hard assets, and a pivotal effort by U.S. Senator Cynthia Lummis to introduce crypto-friendly tax reforms into a major budget bill. These parallel developments highlight the growing intersection of macroeconomic policy and digital asset regulation, shaping both short-term market sentiment and the long-term investment landscape for traders and institutions alike. The market's reaction suggests investors are weighing the inflationary potential of expansionary fiscal policy against the promise of a more favorable and clearer tax regime in the United States.
Trump's "Growth Will Offset Deficits" Fuels Bull Case for Hard Assets
The primary catalyst for the recent bullish sentiment came from a pointed message President Trump posted on Truth Social on June 29, 2025. Addressing fiscally conservative Republicans debating his sweeping tax-and-spending package, he wrote, “REMEMBER, you still have to get reelected. Don’t go too crazy! We will make it all up, times 10, with GROWTH, more than ever before.” This statement is widely interpreted as a signal that his administration would prioritize pro-growth policies, even at the cost of short-term increases in the national debt. The proposed bill itself, dubbed the “One Big Beautiful Bill,” combines approximately $3.8 trillion in tax cuts with targeted spending reductions. This approach, which projects that robust economic expansion will ultimately cover revenue shortfalls, has profound implications for asset markets. As analyst Will Clemente noted on X, such a fiscal stance makes holding long-term U.S. Treasuries less attractive while strengthening the argument for owning inflation-resistant assets like Bitcoin and gold. The prospect of sustained deficit spending and potential currency debasement drives capital towards assets with finite supplies, positioning BTC as a key hedge against fiscal irresponsibility.
Bitcoin Price Action and Technical Levels to Watch
This macroeconomic backdrop translated directly into volatile but upward-trending price action for Bitcoin. Over a 24-hour period from June 28 to June 29, BTC fluctuated within a 1.21% range, trading between a low of $107,194 and a high of $108,489. Technical analysis models indicate that a firm support level was established around $107,300, which was tested and held multiple times, particularly during the 02:00–03:00 UTC window on June 29. Momentum was confirmed by a surge in trading volume, which peaked at 7,538 BTC between 08:00 and 11:00 UTC, coinciding with the push towards the intraday high. However, sellers emerged in the final hours of the session. Between 13:05 and 14:04 UTC, the price fell from $108,219 to $108,059, forming a temporary descending channel. A sharp volume spike of 130 BTC at 13:35 UTC pushed the price down to test the $108,030 level, which held, before a final rally brought BTC back toward $108,000 before settling slightly lower. This price action suggests a battle between macro-driven buyers and profit-takers, with the $107,300 and $108,500 levels serving as key near-term boundaries for traders.
Senator Lummis Pushes for Landmark Crypto Tax Reforms
Simultaneously, Senator Lummis is advancing a critical amendment that could fundamentally improve the tax landscape for crypto users in the U.S. Her proposal, intended for the same budget bill, aims to rationalize the tax treatment of core crypto activities. A key provision would waive capital gains taxes on small transactions below $300, with an annual cap of $5,000 in gains. This change would significantly lower the barrier to entry for casual users who are currently deterred by complex tax reporting for minor purchases. Furthermore, the amendment seeks to correct what the industry views as a flawed approach to taxing rewards from staking and mining. As argued by the Digital Chamber of Commerce, current rules tax these assets upon both acquisition and sale. The Lummis proposal would align the tax treatment with that of other produced goods, taxing the rewards only when they are sold. This would apply to assets gained from staking, mining, airdrops, and forks, providing much-needed clarity and fairness. The amendment also reportedly seeks to close the wash-sale loophole for crypto, bringing digital asset trading rules more in line with traditional securities. While the political path for the bill remains challenging, the inclusion of these crypto provisions signals a growing bipartisan recognition of the need for a coherent regulatory framework, a long-term bullish signal for the entire asset class. While Bitcoin's price was in focus, other assets showed mixed results. The AVAX/BTC pair, for instance, surged an impressive 6.73%, while the SOL/BTC pair declined by 0.92%, indicating capital rotation within the crypto ecosystem as traders react to different narratives.
Fox News
@FoxNewsFollow America's #1 cable news network, delivering you breaking news, insightful analysis, and must-see videos.