Tag: fiscal

  • Elon Musk announces his ‘America Party’ will embrace Bitcoin, criticizes Trump’s fiscal bill

    Elon Musk announces his ‘America Party’ will embrace Bitcoin, criticizes Trump’s fiscal bill

    Elon Musk announces his 'America Party' will embrace Bitcoin, criticizes Trump's fiscal bill

    Elon Musk, the founder of Tesla and SpaceX, has declared that his nascent political movement, the “America Party,” will embrace Bitcoin, stating that traditional fiat currency “is hopeless.”

    This announcement, made on the social media platform X, comes amid a deepening public rift between Musk and President Donald Trump, primarily over the administration’s fiscal policies.

    Musk’s plan to form the “America Party” appears to have been catalyzed by his strong opposition to President Trump’s massive tax and spending package, colloquially known as the “Big Beautiful Bill.”

    Musk has harshly criticized the legislation as being fiscally irresponsible, at one point labeling it the “debt slavery bill.”

    This disagreement has seemingly created an irreparable break between the two influential figures.

    While the America Party has not yet been officially registered and lacks an official website, Musk has used his posts and retweets from supporters to outline its core ideology.

    He envisions a party that champions a pro-tech, pro-free speech, and anti-regulation agenda, while adopting generally centrist policies on other issues.

    Musk, a long-time supporter of cryptocurrencies whose companies SpaceX and Tesla both hold Bitcoin (BTC) in their corporate treasuries, sees the digital asset as a key part of this new political vision.

    Musk has indicated on X that the party, once formally established, will not immediately field a Presidential candidate.

    Instead, its initial focus will be on contesting House and Senate races, aiming to build a political foothold from the ground up.

    President Trump, for his part, has not taken kindly to Musk’s political maneuvering.

    In a Truth Social post on Sunday evening US time, Trump fired back, stating that Musk had gone “off the rails” and had become a “TRAIN WRECK.”

    Crypto markets react to easing trade tensions

    While this political drama unfolds, the broader cryptocurrency market experienced a lift on Sunday morning.

    Major cryptocurrencies rose after US Treasury Secretary Scott Bessent hinted at the likelihood of upcoming trade deals being finalized before the crucial July 9 “Liberation Day” tariff deadline.

    Bitcoin, the leading cryptocurrency by market value, gained over 1%, briefly surpassing the $109,000 mark.

    Other major tokens also saw gains: payments-focused XRP and Solana’s SOL token both rose by over 2%, while the popular meme token Dogecoin (DOGE) climbed 3%, according to data from CoinDesk.

    Ethereum’s Ether (ETH), the second-largest token, rose 1.5% to $2,550.

    The tariff clock is ticking

    In an interview with CNN, Treasury Secretary Bessent stated that the US is close to finalizing several trade deals ahead of the July 9 deadline.

    This is the date when a temporary pause on higher tariffs, initially announced on April 2, is set to expire.

    “President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1, you will boomerang back to your April 2 tariff level. So I think we’re going to see a lot of deals very quickly,” Bessent said, according to Reuters.

    He clarified that July 9 remains the firm deadline for negotiations; if deals are not reached, the higher tariffs announced in early April will take effect from August 1.

    “We are saying this is when it’s happening. If you want to speed things up, have at it. If you want to go back to the old rate, that’s your choice,” Bessent told CNN, adding that some countries were “foot-dragging” on finalizing deals.

    This coercive tactic of imposing tariffs to rebalance trade relations and reduce the US trade deficit has been a central pillar of President Donald Trump’s economic policy since he took office earlier this year.


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  • Bitcoin rises above $107K as Trump’s fiscal policy comments boost hard assets

    Bitcoin rises above $107K as Trump’s fiscal policy comments boost hard assets

    Bitcoin rises above $107K as Trump's fiscal policy comments boost hard assets

    • Bitcoin traded above $107K Sunday as focus turned to U.S. fiscal policy and Trump’s “Big Beautiful Bill.”
    • Trump urged “cost cutting Republicans” not to “go too crazy,” promising growth will “make it all up.”
    • Expectations of sustained deficits and loose fiscal policy are bolstering the bull case for hard assets like BTC and gold.

    Bitcoin traded steadily above the $107,000 mark on Sunday, with market attention increasingly focused on fiscal policy tensions brewing in Washington.

    A recent social media post from President Donald Trump, aimed at quelling dissent within his own party over a massive tax-and-spending package, has inadvertently bolstered the bullish case for assets like Bitcoin and gold, which are often seen as hedges against fiscal profligacy.

    The latest market movements come as Bitcoin was changing hands at $107,937 as of 22:22 UTC on Sunday, up 0.54% over the past 24 hours.

    Price action remained volatile, with the cryptocurrency fluctuating between $107,194 and $108,489 during that window, according to CoinDesk Research’s technical analysis model.

    The focus shifted to US fiscal policy following a pointed message from President Trump on his Truth Social platform on June 29, 2025.

    Addressing Republican lawmakers amid a fierce internal debate over his sweeping legislative package, Trump wrote:

    For all cost cutting Republicans, of which I am one, 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 lays bare the deep divisions within the Republican party as it struggles to unify behind the ambitious legislation, which has been dubbed the “One Big Beautiful Bill.”

    The bill itself, exceeding 900 pages, is a complex mix of fiscal measures.

    It combines approximately $3.8 trillion in tax cuts with targeted spending reductions and increased funding for defense and border security.

    A key component is the aim to make permanent many of the tax breaks from Trump’s 2017 Tax Cuts and Jobs Act, including the elimination of taxes on tips, overtime pay, and certain auto loans.

    The child tax credit would also rise to $2,200 under the Senate version, while deductions for seniors would be temporarily increased.

    To offset the cost of these tax cuts, however, Republicans have proposed significant cuts to Medicaid and nutrition programs, a move that has sparked intense debate within the party.

    Navigating a political tightrope

    The path to passing the bill is fraught with political challenges.

    Moderate Republicans, particularly those from high-tax states, are pushing for a higher cap on state and local tax (SALT) deductions.

    In contrast, conservative factions are demanding deeper and more extensive spending cuts, with a particular focus on Medicaid.

    These internal disagreements are complicating efforts to secure the narrow Republican majorities needed in both the House and the Senate to pass the legislation, which faces uniform opposition from Democrats, who argue it disproportionately favors the wealthy and will worsen economic inequality.

    President Trump’s social media message appears to be an attempt to walk this political tightrope.

    He is urging a degree of fiscal restraint to appease conservatives while simultaneously emphasizing a supply-side economic argument: that robust economic growth will ultimately compensate for near-term revenue losses and help reduce deficits over time.

    This “growth will make it all up” approach comes as nonpartisan analysts estimate the bill could add trillions of dollars to the already substantial $36.2 trillion national debt.

    A bullish signal for Bitcoin and gold?

    This fiscal backdrop is being closely watched by market participants, with some interpreting it as a strong signal for holding hard assets.

    Crypto analyst Will Clemente’s reaction on the social media platform X (formerly Twitter), posted shortly after Trump’s message, captured a common sentiment among those skeptical of current fiscal policies:

    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.

    Clemente’s skepticism towards long-term US Treasuries reflects a growing concern that the bill’s deficit-financed tax cuts and relatively modest spending reductions signal a loose fiscal policy that could fuel inflation and devalue the currency over time.

    In such a scenario, traditional fixed-income assets like Treasuries can become less attractive, as rising deficits and potential monetary accommodation (to finance the debt) threaten to erode the value of both principal and interest payments.

    Conversely, hard assets with limited supply, such as gold and Bitcoin, are increasingly viewed as reliable stores of value and effective hedges against inflation and fiscal irresponsibility.

    The expectation of sustained, large deficits and the clear political challenges to implementing meaningful fiscal discipline are bolstering the demand for these inflation-resistant assets.

    As the Senate races to finalize the bill before the July 4 holiday, the ongoing negotiations and the ultimate fate of this consequential fiscal package will continue to be a key driver of market sentiment.

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