Trump's Fiscal Policy Fuels Bitcoin (BTC) Rally Above $107k

Bitcoin (BTC) experienced a notable surge over the weekend, with its price climbing to $107,937 by 22:22 UTC on Sunday, marking a 0.54% increase in 24 hours. The catalyst for this bullish momentum appears to be tied directly to fiscal policy discussions in Washington, supercharged by a recent social media post from President Donald Trump. On June 29, 2025, Trump addressed Republican lawmakers on Truth Social regarding his ambitious tax-and-spending proposal, urging them not to be overly zealous with cost-cutting. He asserted that economic growth would more than compensate for any resulting deficits, stating, “We will make it all up, times 10, with GROWTH, more than ever before.” This message immediately resonated with investors who view such expansionary fiscal policies as inflationary, thereby strengthening the investment case for scarce assets like Bitcoin and gold. The market reacted with volatility; the BTCUSDT pair fluctuated between a low of $107,264.24 and a high of $108,746.16 during the 24-hour period, reflecting the market's attempt to price in these macroeconomic signals.

The sentiment was aptly captured by crypto analyst Will Clemente, who remarked on the implications of such fiscal strategy. Shortly after Trump's post, Clemente questioned the appeal of holding long-term U.S. Treasuries at current yields and rhetorically asked, “how can you read this and not hold any Bitcoin or gold.” This perspective highlights a growing consensus among certain investors that significant deficit spending, funded by what is perceived as a loose fiscal approach, will likely lead to currency debasement. The proposed “One Big Beautiful Bill,” a massive legislative package combining approximately $3.8 trillion in tax cuts with targeted spending, is at the center of this debate. The plan to make the 2017 tax cuts permanent while also increasing defense spending could add trillions to the national debt. For traders, this macro environment makes assets with a fixed supply, like Bitcoin's 21 million coin cap, an increasingly attractive hedge against potential inflation and a weakening dollar. The ETHBTC pair also showed strength, rising 1.063% to 0.02282, suggesting capital was flowing into major digital assets, not just Bitcoin.

BTC Technical Levels and Market Dynamics

A closer look at the technicals reveals a dynamic trading session. Between June 28 and June 29, Bitcoin carved out a clear support level around $107,300, a price it successfully defended multiple times, particularly during the 02:00–03:00 UTC window. Trading volume provided confirmation for the upward momentum, peaking at 7,538 BTC between 08:00 and 11:00 UTC on June 29, coinciding with the push towards the session's high of $108,489. However, the momentum wasn't entirely one-sided. In the final hours of the session, a descending channel formed as BTC fell from $108,219 to $108,059. A notable volume spike of 130 BTC at 13:35 UTC corresponded with a sharp, but brief, dip to $108,030, which was quickly bought up, indicating the presence of dip-buyers. As of the latest data, BTCUSDT was trading at $107,654.29, showing a slight pullback but still maintaining its elevated position. Meanwhile, other assets like Solana (SOL) and Cardano (ADA) saw minor pullbacks against the dollar, with SOLUSDT down 1.148% and ADAUSDT down 0.971%, indicating some profit-taking in altcoins as focus shifted to Bitcoin's macro-driven move.

Legislative Crosswinds: The COIN Act

While the market celebrates the bullish macro narrative, significant legislative headwinds are forming in Washington. Senator Adam Schiff, a Democrat from California, has introduced the Curbing Officials’ Income and Nondisclosure (COIN) Act. This bill aims to prohibit senior government officials, including the president and members of Congress, from issuing, sponsoring, or endorsing digital assets during their service and for two years after. Schiff explicitly cited President Trump’s extensive cryptocurrency dealings as a primary motivation, expressing concerns over the potential for self-enrichment. This move is particularly noteworthy as Schiff was one of 18 Democrats who recently voted in favor of a stablecoin bill, positioning him as a nuanced, but not unconditionally supportive, figure in the crypto regulation debate.

Schiff's bill is not an isolated effort. It joins a chorus of similar legislative proposals from other prominent Democrats, including Representative Ritchie Torres of New York, a staunch crypto advocate, and Representative Maxine Waters. These bills reflect a deep-seated concern among some lawmakers that Trump's personal and familial financial interests in crypto—including NFTs and a self-branded memecoin—create a conflict of interest as his administration shapes digital asset policy. While these Democrat-led bills are unlikely to pass in a Republican-controlled Congress, they represent a persistent political risk for the industry. Proponents may attempt to attach this language to other essential legislation, creating potential roadblocks for the broader market structure bills that the crypto sector is eagerly awaiting. This political tension creates a complex environment for traders, who must balance the bullish signals from expansionary fiscal policy against the bearish risk of restrictive and targeted legislation.