Donald Trump provoked another rise in bitcoin

Bitcoin BTC $107,640.54 Bitcoin -0.51% Market capitalization $2.14 trillion VOL. 24 hours $0.9 billion traded above the $ 107,000 mark as investors closely followed developments around US fiscal policy and the new bill being pushed by Donald Trump. The president urged Republicans focused on spending cuts not to «go too far» with austerity, promising that economic growth would cover all budget losses.

The discussions around the massive bill, known as the «One Big Beautiful Bill,» have already had an impact on the market, with many investors taking the expected policy of budget deficits and flexible financing as a signal in favor of assets such as bitcoin and gold. According to CoinDesk Research, the value of bitcoin reached $ 107,937 at 22:22 UTC, showing an increase of 0.54% per day and ranging from $ 107,194 to $ 108,489.

The 900-plus page bill includes $ 3.8 trillion in tax breaks, targeted spending cuts, and increased funding for defense and border security. Key provisions include the intention to make permanent many of the tax breaks introduced in 2017, to eliminate taxes on tips, overtime, and certain car loans, and to increase the child tax credit to $ 2,200. At the same time, significant cuts to Medicaid and nutrition assistance programs are proposed, which is controversial among Republicans themselves.

Republicans from high-tax states are in favor of increasing the limit on the deduction of local taxes (SALT), while more conservative factions are demanding deeper spending cuts, especially in social programs. Democrats strongly oppose the bill, arguing that it will deepen social inequality and lead to even larger budget deficits, which analysts estimate could increase the national debt, which already stands at $ 36.2 trillion.

In this situation, with politicians arguing over how to finance new initiatives and staying the course of fiscal easing, interest in hard asset investments is growing. Against the backdrop of Trump’s comments, analysts and the market view Bitcoin and gold as a hedge against inflation and potential dollar devaluation, believing that such assets will remain attractive as long as the risks of a rising US budget deficit remain.