Bitcoin (BTC) experienced a bout of volatility over the weekend, with its price reacting to fiscal policy developments in Washington. As of 22:22 UTC on Sunday, the BTCUSDT pair was trading around $107,479, navigating a tight 24-hour range between a low of $106,766 and a high of $108,746. The market's focus sharpened following a June 29, 2025, post on Truth Social by President Donald Trump regarding his administration's ambitious tax-and-spending proposal. The message, aimed at fiscally conservative Republicans, urged unity while promising that economic growth would more than offset any resulting deficits. “We will make it all up, times 10, with GROWTH, more than ever before,” he stated, attempting to bridge the divide within his party over the nearly $3.8 trillion package.

Trump's Fiscal Policy Ignites Debate, Bolstering Bitcoin's Safe-Haven Appeal

The proposed legislation, dubbed the “One Big Beautiful Bill,” aims to make the 2017 tax cuts permanent while introducing new breaks, such as eliminating taxes on tips and overtime pay. However, these cuts are paired with proposed reductions in social programs like Medicaid, creating significant friction within the Republican party. This internal conflict, coupled with unified Democratic opposition, casts uncertainty on the bill's passage. The core of the debate centers on the bill's potential impact on the national debt, which nonpartisan analysis suggests could increase by trillions. President Trump's assurance that supply-side economics will fuel enough growth to cover these costs has been met with both support and skepticism, creating a potent environment for assets perceived as hedges against fiscal irresponsibility.

The crypto market's interpretation of this political maneuvering was succinctly captured by analyst Will Clemente. Shortly after the President's post, he 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 sentiment reflects a growing conviction among investors that expansive fiscal policies, potentially financed by increased debt, will lead to currency debasement and inflation over the long term. In such a scenario, the finite supply of assets like Bitcoin and gold makes them attractive stores of value compared to traditional fixed-income instruments like U.S. Treasuries, whose real yields could be eroded by inflation. The political pressure to prioritize growth over immediate deficit reduction strengthens the long-term bullish case for BTC.

Bitcoin Technical Analysis: Navigating Volatility Amidst Fiscal Uncertainty

BTC Price Action and Key Levels

From a technical standpoint, Bitcoin's price action on June 29 reflected this macro tension. The cryptocurrency carved out a 1.21% intraday range between $107,194 and $108,489. A critical support level formed near $107,300, which was tested and held multiple times, particularly during the 02:00–03:00 UTC window. Trading volume provided further clues, with a significant peak of 7,538 BTC between 08:00 and 11:00 UTC, which helped confirm the upward momentum toward the session highs. However, sellers emerged in the final hours. In the hour between 13:05 and 14:04 UTC, BTC price fell from $108,219 to $108,059, with a notable 130 BTC volume spike at 13:35 UTC coinciding with a dip to $108,030. This level was briefly defended before the price faded back below the psychological $108,000 mark by the end of the day.

Broader Market Sentiment and Altcoin Performance

While Bitcoin consolidated, several major altcoins showed notable strength, suggesting a degree of risk-on appetite within the digital asset space. The ETHBTC pair climbed 2.74% to trade at 0.02323, indicating Ethereum was outperforming Bitcoin. This strength was also visible in the ETHUSDT pair, which rose 2.56% to $2,499.15. Other Layer-1 blockchains also posted strong gains against Bitcoin; the SOLBTC pair rallied 3.01% to 0.0014548, and the AVAXBTC pair surged an impressive 6.73% to 0.0002267. This performance suggests that while traders are using Bitcoin as a macro hedge against fiscal policy, they are also rotating capital into altcoins in search of higher beta returns, a classic sign of confidence within the crypto market itself. The key for traders moving forward will be to monitor whether BTC can break and hold above the $108,500 resistance or if it will retest support at $107,300.