Bitcoin (BTC) experienced a notable uptick in trading activity, reaching $107,937 by 22:22 UTC on Sunday, marking a 0.54% increase over the preceding 24 hours. The price action was largely influenced by unfolding fiscal policy debates in Washington D.C., brought into sharp focus by a recent statement from President Donald Trump. Throughout the day, BTC demonstrated significant volatility, with its price oscillating between a low of $107,194 and a high of $108,489. This volatility underscores the market's sensitivity to macroeconomic signals, particularly those emanating from the highest levels of U.S. government. The catalyst for the recent market attention was a post on Truth Social by President Trump on June 29, 2025, where he addressed fiscally conservative Republicans navigating the complexities of a major tax-and-spending package. His message aimed to assuage concerns about rising deficits, urging lawmakers not to be overly aggressive with cuts and promising that economic growth would more than compensate for any short-term fiscal imbalances.

Fiscal Policy and the Bull Case for Bitcoin

President Trump's statement, “We will make it all up, times 10, with GROWTH, more than ever before,” serves as the philosophical backbone for the proposed “One Big Beautiful Bill.” This massive legislative package, spanning over 900 pages, outlines approximately $3.8 trillion in tax cuts while also earmarking funds for defense and border security, offset by reductions in other programs. The bill's core is the permanent extension of tax breaks from the 2017 Tax Cuts and Jobs Act. However, this supply-side economic approach, which projects that growth will ultimately cover the costs, has ignited a firestorm of debate. Nonpartisan analysts project the package could add trillions to the national debt, which already stands at a staggering $36.2 trillion. This prospect of expanding deficits and a looser fiscal stance has profound implications for financial markets and asset allocation strategies.

The reaction from the cryptocurrency community was swift and telling. Crypto analyst Will Clemente articulated a widespread sentiment on X, stating, “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 highlights a growing skepticism towards traditional safe-haven assets like U.S. Treasuries in an environment of potential currency debasement and inflation fueled by deficit spending. For many traders and investors, the fiscal trajectory outlined by the administration strengthens the argument for holding hard assets with finite supplies, such as Bitcoin and gold. These assets are increasingly seen not just as speculative instruments but as essential hedges against inflationary pressures and geopolitical instability, acting as a store of value outside the traditional financial system.

Crypto Tax Provision Stalls as Budget Bill Advances

While the macroeconomic narrative provided a tailwind for Bitcoin's price, a specific legislative development for the crypto industry hit a roadblock. As the Senate narrowly passed the budget bill with a 50-50 vote broken by the Vice President, a much-anticipated amendment to clarify cryptocurrency taxation failed to make the cut. Senator Cynthia Lummis had championed changes to rationalize the U.S. tax code for digital assets, including a proposal to waive capital gains taxes on small-scale crypto transactions. Despite significant lobbying efforts from the industry, her amendment was not included in the final version of the bill that passed the Senate. This outcome means that the current, often complex and debated, tax rules for crypto remain in place for now, pushing the effort for clearer regulations back to standalone legislative initiatives.

BTC Technicals and Altcoin Performance

From a technical standpoint, Bitcoin's price action over the weekend was constructive. The BTC/USDT pair on major exchanges saw a 24-hour high of $109,022.89 and a low of $107,267.71, confirming the wide trading range. Crucial support was established around the $107,300 level, which held firm despite several tests. Trading volume for the BTC/USDT pair was recorded at 7.7 million over 24 hours, indicating sustained interest. While Bitcoin consolidated, some altcoins showed notable strength. The AVAX/BTC pair, for instance, surged by an impressive 6.73% to trade at 0.00022670 BTC, with volume exceeding 859 BTC, signaling a strong rotational play by traders. In contrast, the ETH/BTC pair remained subdued, trading down 0.64% at 0.02330000, suggesting that capital flows were selective. Traders will now watch to see if BTC can break and hold above the $109,000 resistance level, which could open the door to further upside momentum, while the failure of the crypto tax provision remains a medium-term headwind for broader market adoption.