- Bitcoin traded above $107K on Sunday as attention turned to U.S. fiscal policy and Trump’s “Big Beautiful Bill.”
- Trump urged “cost-saving Republicans” not to “go crazy” and promised that growth would “make it all up.”
- Expectations of persistent deficits and loose fiscal policy strengthen the bull case for hard assets such as BTC and gold.
Bitcoin traded steadily above the $107,000 mark on Sunday as market attention increasingly focused on the brewing fiscal-policy tensions in Washington.
A recent social-media post by President Donald Trump—intended to ease intra-party divisions over a sweeping tax and spending package—has inadvertently bolstered the upside case for assets like Bitcoin and gold, which are often viewed as hedges against fiscal largesse.
The latest market moves came as Bitcoin changed hands at $107,937 at 22:22 UTC on Sunday, a rise of 0.54% over the prior 24 hours.
Price action remained volatile, with the cryptocurrency swinging between $107,194 and $108,489 during that window, according to CoinDesk Research’s technical model.
Attention shifted to U.S. fiscal policy after a blunt message from President Trump on his Truth Social platform on June 29, 2025.
Addressing Republican lawmakers amid a fierce internal debate over his sweeping package, Trump wrote:
“Despite all the cost-saving Republicans, of which I am one, REMEMBER, you still have to get re-elected. Don’t go crazy! We will make it all up, times 10, with GROWTH, more than ever before.”
The remark exposed deep divisions within the Republican Party as it struggles to unite behind the ambitious legislation dubbed the “One Big Beautiful Bill.”
The bill itself—more than 900 pages—is a complex mix of fiscal measures. It combines roughly $3.8 trillion in tax cuts with targeted spending reductions and increased funding for defense and border security.
A key element is the effort to make many of the tax cuts from Trump’s 2017 tax and jobs law permanent, including eliminating taxes on tips, overtime pay, and certain vehicle loans.
The Senate version also would raise the child tax credit to $2,200 and temporarily increase deductions for seniors.
To offset the cost of these tax cuts, Republicans have proposed significant reductions to Medicaid and nutrition programs, a move that has sparked intense debate within the party.
Walking a political tightrope
The path to passing the bill is filled with political obstacles.
Moderate Republicans, especially those from high-tax states, are pushing for a higher cap on state and local tax (SALT) deductions.
By contrast, conservative factions are demanding deeper, broader spending cuts with a particular focus on Medicaid.
These internal disagreements complicate efforts to secure the narrow Republican majorities needed in both the House and Senate to pass legislation that faces unified opposition from Democrats, who argue it disproportionately favors the wealthy and would worsen economic inequality.
Trump’s social-media message appears to be an attempt to straddle this political line.
He calls for some fiscal restraint to placate conservatives while emphasizing a supply-side economic argument: that robust growth will ultimately offset short-term revenue losses and help reduce deficits over time.
This “growth will make it all up” approach comes as independent analysts estimate the proposal could add trillions of dollars to the already substantial $36.2 trillion national debt.
A bullish signal for Bitcoin and gold?
Market participants are watching this fiscal backdrop closely, and some interpret it as a strong signal to hold hard assets.
Crypto analyst Will Clemente’s reaction on X (formerly Twitter), posted shortly after Trump’s message, captured a common sentiment among those skeptical of current fiscal policy:
“How can you read this and hold long-term U.S. Treasuries at current yields lol… Also, how can you read this and not hold any Bitcoin or gold.”
Clemente’s skepticism toward long-term U.S. Treasuries reflects growing concern that deficit-financed tax cuts combined with modest spending reductions signal a loose fiscal stance that could stoke inflation and erode currency value over time.
In that scenario, traditional fixed-income assets like Treasuries may lose appeal as rising deficits and potential monetary easing (to finance debt) threaten the real value of principal and interest payments.
By contrast, 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.
Expectations of sustained, sizable deficits and the clear political difficulties of implementing meaningful fiscal discipline are fueling demand for these inflation-resistant assets.
As the Senate races to finish the bill before the July 4 recess, ongoing negotiations and the ultimate fate of this follow-on fiscal package will remain a key driver of market sentiment.