Bitcoin Price Surges as Trump's Fiscal Policy Fuels Inflationary Fears

Bitcoin (BTC) is demonstrating significant strength, with its price pushing towards previous all-time highs as traders react to shifting macroeconomic signals from Washington. As of 22:22 UTC on Sunday, the BTC/USDT pair was trading at $108,058, marking a nearly 0.5% gain over the preceding 24 hours. The renewed bullish momentum follows comments from President Donald Trump regarding his administration's ambitious fiscal agenda, which has amplified the investment case for scarce assets like Bitcoin and gold. In a message posted on Truth Social on June 29, 2025, Trump addressed fiscally conservative Republicans, stating, “We will make it all up, times 10, with GROWTH, more than ever before.” This statement, aimed at easing concerns over the deficit impact of his proposed tax-and-spending package, has been interpreted by many market participants as a signal of continued loose fiscal policy, a key driver for inflation-hedge assets.

The market's reaction highlights a growing conviction that substantial government spending and rising national debt will ultimately devalue fiat currencies. Crypto analyst Will Clemente articulated this sentiment, questioning the appeal of long-term U.S. treasuries at current yields in light of the policy direction. He noted, “How can you read this and not hold any Bitcoin or gold.” This perspective is shared by institutional figures like Ray Dalio, who has warned that the proposed budget could push U.S. debt-to-GDP ratios toward 130% over the next decade. Dalio suggests that without significant adjustments, this path could lead to “big, painful disruptions.” This macroeconomic backdrop, combined with a record U.S. M2 money supply now at $21.9 trillion, creates a powerful tailwind for Bitcoin, which investors increasingly turn to as a store of value to preserve purchasing power.

BTC Technical Analysis and Market Dynamics

From a technical standpoint, Bitcoin's price action shows strong underlying support and building momentum. Over the past day, BTC has fluctuated within a tight range between a low of $107,267 and a high of $108,341. A critical support level has formed around the $107,300 mark, which was successfully tested and defended multiple times. Trading volume has also been indicative of bullish sentiment. A significant volume peak of 7,538 BTC was observed between 08:00 and 11:00 UTC on June 29, coinciding with the upward price thrust and confirming strong buying interest. This activity has positioned Bitcoin less than 3% below its all-time high set in May, with many analysts now eyeing a breakout in the coming weeks. The strong seasonal trend for July, which has historically seen average gains of around 7% for BTC, further supports the optimistic outlook.

The broader market is reflecting this confidence. While Bitcoin leads the charge, several altcoins are also posting impressive gains, suggesting that capital is flowing across the digital asset ecosystem. The AVAX/BTC pair, for instance, surged by over 6.7% in the last 24 hours, trading at 0.00022670 BTC, indicating strong relative performance against Bitcoin itself. Similarly, Litecoin (LTC/BTC) saw a 1.69% increase. This broad-based strength is often a precursor to a major market-wide rally. As U.S. equity indexes like the S&P 500 and Nasdaq Composite continue to set new records, the risk-on appetite among investors is palpable. This environment is highly conducive for assets like Bitcoin, which benefit from both the spillover of capital from traditional markets and their unique value proposition as a hedge against the very fiscal and monetary policies that are fueling the equity boom. With key support holding firm and macroeconomic tailwinds gathering strength, traders are closely watching for a definitive break above the $109,000 resistance level to signal the next major leg up.