Bitcoin Rallies on Fiscal Policy Outlook as Crypto Tax Provision Stalls in Senate

Bitcoin (BTC) has demonstrated notable strength, pushing towards the $108,000 mark amidst significant fiscal policy developments in Washington D.C. As of 22:22 UTC, BTC was trading at approximately $107,937, marking a modest 0.54% gain over the preceding 24 hours. The price action was driven by a combination of macroeconomic signals and specific legislative outcomes impacting the digital asset space. The primary catalyst for the bullish sentiment came directly from former President Donald Trump, whose comments on fiscal strategy ignited a debate about the future of the U.S. dollar and the appeal of hard assets like Bitcoin and gold. This occurred even as the cryptocurrency industry faced a legislative setback, with a key tax provision failing to make its way into a major budget bill advancing through the Senate.

Trump's "Growth" Comments Fuel BTC and Gold Bull Case

On June 29, 2025, a pivotal message from Donald Trump on his Truth Social platform resonated through financial markets. Addressing fiscally conservative Republicans debating his sweeping tax-and-spending package, he wrote, “For all cost cutting Republicans... 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, aimed at unifying his party behind the massive bill, signaled a clear reliance on supply-side economics to offset trillions in proposed tax cuts. The market interpreted this as a willingness to tolerate significant near-term deficit spending, a policy that historically weakens fiat currencies and boosts inflation hedges. Crypto analyst Will Clemente captured the sentiment on social media platform X, stating, “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.” His analysis highlights a growing consensus among traders that expansive fiscal policies will likely lead to currency debasement, making scarce, non-sovereign assets like BTC increasingly attractive as a store of value.

Legislative Setback for Crypto Taxation

While the macroeconomic environment turned favorable for Bitcoin, the industry experienced a disappointment on the regulatory front. A crucial amendment proposed by Senator Cynthia Lummis, aimed at clarifying and easing the tax burden on small-scale crypto transactions, was not included in the final version of the budget bill that narrowly passed the Senate. The bill, a cornerstone of the Republican agenda, underwent a marathon session of amendment debates before passing on a 50-50 vote, with the Vice President casting the tie-breaker. Senator Lummis’s proposal sought to waive capital gains taxes on minor crypto activity, a move the industry has long lobbied for to promote mainstream adoption and eliminate what proponents call unfair double taxation. Despite last-minute efforts, the amendment was not brought to a vote, forcing advocates to pursue these changes through standalone legislation. The bill, which now heads to the House of Representatives for a contentious debate, focuses on extending tax relief, increasing military spending, and boosting domestic energy production, but leaves the crypto tax structure unchanged for now.

BTC Technical Analysis and Key Trading Levels

From a trading perspective, Bitcoin's price action reflects the shifting sentiment. Over the 24-hour period leading up to Sunday evening, the BTC/USDT pair on major exchanges saw a high of $109,436.45 and a low of $107,267.71. Technical analysis shows a firm support level was established around $107,300, which was tested and held multiple times, particularly during the early hours between 02:00 and 03:00 UTC. Bullish momentum was confirmed by a significant volume spike, with trading volume peaking at 7,538 BTC between 08:00 and 11:00 UTC on June 29, corresponding with the market digesting Trump's fiscal commentary. However, the rally faced some resistance as the session progressed. In the final hour of trading analyzed, from 13:05 to 14:04 UTC, BTC price action formed a minor descending channel, falling from $108,219 to $108,059. A notable volume spike of 130 BTC at 13:35 UTC coincided with a brief dip to $108,030, a level that was quickly reclaimed. For traders, the key takeaway is the strong support at the $107,300 level and the market's positive reaction to macro-fiscal news, suggesting that the path of least resistance remains upward as long as this support holds.