Bitcoin Navigates US Fiscal Policy Debates and Tariff Threats

The cryptocurrency market demonstrated notable resilience, absorbing macro-economic headlines from Washington D.C. with minimal volatility. Bitcoin (BTC) saw a slight uptick, trading at approximately $107,937 as of 22:22 UTC on Sunday, marking a 0.54% increase over the preceding 24 hours. The price action was contained within a tight range, fluctuating between a low of $107,194 and a high of $108,489. This relative stability occurred even as President Donald Trump revived tariff threats, announcing an end to trade discussions with Canada over a proposed Digital Services Tax. However, market attention quickly pivoted to a more pressing domestic issue: a sprawling tax-and-spending package that has ignited debate within the Republican party. In a widely circulated post on Truth Social on June 29, 2025, President Trump sought to quell concerns from fiscally conservative lawmakers, stating, “We will make it all up, times 10, with GROWTH, more than ever before.” This message underscored the administration's reliance on supply-side economics to justify significant tax cuts, a policy stance with profound implications for inflation, the national debt, and by extension, the appeal of hard assets like Bitcoin.

The legislative proposal, dubbed the “One Big Beautiful Bill,” spans over 900 pages and proposes approximately $3.8 trillion in tax cuts. It aims to make permanent the 2017 Tax Cuts and Jobs Act provisions while introducing new breaks, such as eliminating taxes on tips and overtime pay. To partially offset these cuts, the bill includes reductions in Medicaid and nutrition programs. This has created a rift within the GOP, with moderates demanding a higher cap on state and local tax (SALT) deductions and conservatives pushing for even deeper spending cuts. The political maneuvering is critical, as the bill requires near-unanimous Republican support to pass through the narrowly controlled chambers of Congress. Nonpartisan analysis suggests the package could add trillions to the $36.2 trillion national debt, a prospect that has asset managers and traders closely monitoring the situation. The outcome of these negotiations, expected before the July 4 holiday, will set the fiscal tone for years to come and directly influence the environment for risk assets and inflation hedges.

The Growing Bull Case for Bitcoin and Gold

The fiscal backdrop has amplified the bullish narrative for scarce assets. Crypto analyst Will Clemente captured this sentiment perfectly in a post on X, reacting to the President's message on growth by questioning the wisdom of holding long-term U.S. treasuries at current yields. He added, “Also, how can you read this and not hold any Bitcoin or gold.” This perspective is gaining traction among investors who fear that deficit-financed tax cuts and persistent political pressure against fiscal austerity will inevitably lead to currency debasement. In such a scenario, the value of fixed-income assets like government bonds erodes, while non-sovereign stores of value with fixed supplies, such as Bitcoin (BTC) and gold, become increasingly attractive. The market is pricing in the risk that robust economic growth may not materialize as projected, leaving the government to finance its deficits through further debt issuance and potential monetary expansion, reinforcing the core value proposition of cryptocurrencies.

BTC Technical Levels and Altcoin Performance

From a technical standpoint, Bitcoin's price action between June 28 and June 29 revealed key levels for traders. BTC established a firm support base around the $107,300 mark, successfully defending this level during multiple tests between 02:00 and 03:00 UTC. Trading volume provided confirmation of bullish sentiment, peaking at 7,538 BTC between 08:00 and 11:00 UTC on June 29, which helped propel the price towards its intraday high. In the final hours of the session, BTC formed a descending channel, falling from $108,219 to $108,059, before a brief volume spike at 13:35 UTC tested and held the $108,030 level. While Bitcoin consolidated, some altcoins showed greater momentum. The ETH/BTC pair climbed 2.6%, trading at 0.02321, indicating some capital rotation into Ethereum. Elsewhere, crypto-related equities displayed significant volatility. While Bitcoin miners remained mostly flat, Hut 8 (HUT) declined by 6.5%. The AI narrative continued to influence the sector, following a report that AI firm CoreWeave was exploring an acquisition of miner Core Scientific (CORZ), which had caused CORZ stock to surge over 30% on Thursday.