Tag: Policy

• 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.