Bitcoin (BTC) is demonstrating notable resilience, navigating a complex macroeconomic landscape shaped by fiscal policy debates in Washington D.C. As of late Sunday, the BTCUSDT pair was trading around $108,344, marking a nearly 1% gain over the previous 24 hours. This price action follows a pivotal statement from former President Donald Trump, which has amplified the bullish narrative for hard assets like Bitcoin and gold. The market is closely watching the interplay between political rhetoric, potential currency debasement, and regulatory developments, creating a dynamic environment for traders.

The primary catalyst for the recent market sentiment shift was a post by Donald Trump on his Truth Social platform regarding a sweeping tax-and-spending package. He urged Republican lawmakers to not be overly aggressive with spending cuts, stating, “We will make it all up, times 10, with GROWTH, more than ever before.” This comment signals a strong preference for a supply-side economic approach, where aggressive growth is expected to offset near-term deficit increases. For many market participants, this strategy implies a continuation of loose fiscal policy, which historically weakens the U.S. dollar and increases the appeal of inflation hedges. The projection that growth will solve burgeoning national debt challenges has led to skepticism about the long-term value of fiat-denominated assets, particularly U.S. Treasuries.

Fiscal Policy Fuels BTC and Gold as Safe Havens

The market's interpretation of these fiscal developments was articulated by crypto analyst Will Clemente, who remarked on X, “How can you read this and hold long term US treasuries at current yields lol... Also, how can you read this and not hold any Bitcoin or gold.” This perspective encapsulates the core bull case for BTC in the current environment. The prospect of sustained, large-scale government deficits, potentially financed through monetary expansion, raises significant concerns about currency debasement. In such a scenario, assets with a fixed or predictable supply, like Bitcoin's 21 million coin cap and physical gold, become increasingly attractive as stores of value. They are seen as a hedge against the erosion of purchasing power that can result from inflationary fiscal and monetary policies. The ongoing political debate over the massive tax bill only serves to highlight the deep-seated challenges in achieving fiscal discipline, reinforcing the long-term bullish thesis for scarce assets.

Technical Price Action and Key Levels

From a trading perspective, Bitcoin's price action has been constructive. Over a recent 24-hour period, BTC fluctuated between a low of $107,152 and a high of $108,473. A key support level appears to have formed around the $107,300 mark, which held firm during several tests. Volume analysis supports the upward momentum, with a significant increase in trading activity observed during the climb towards the session highs. The ETH/BTC pair also showed strength, rising over 2% to trade at approximately 0.02328, indicating that positive sentiment was not confined to Bitcoin alone. Other altcoins like Avalanche (AVAX) showed even more impressive relative strength, with the AVAX/BTC pair surging over 6.7%. For traders, the immediate resistance level to watch is the recent high near $108,500. A decisive break above this level could open the door for a test of higher psychological resistance marks, while a failure to hold the $107,300 support could signal a short-term pullback.

Stablecoin Regulation Faces Legislative Gridlock

While the macroeconomic picture appears favorable for Bitcoin, the regulatory front presents a more complex picture. President Trump has urged the House of Representatives to quickly pass the Senate's version of the stablecoin oversight bill, known as the GENIUS Act, without any amendments. However, key lawmakers are signaling a more deliberate approach. Representative French Hill, a central figure in the House's crypto legislative efforts, indicated in remarks at the Brookings Institution that significant differences remain between the Senate's bill and the House's own STABLE Act. He highlighted material disagreements on topics such as extraterritoriality—the reach of U.S. law abroad—and the respective roles of state and federal regulators. This divergence suggests that a swift, 'clean' passage is unlikely, and negotiations will be required to find a common landing place. This ongoing regulatory uncertainty remains a key variable for the market, as clear rules of the road are seen as essential for long-term institutional adoption.