Bitcoin (BTC) is showing strong signs of a breakout, trading steadily above $108,000 after a recent surge pushed it beyond the $110,000 mark. Despite this impressive climb, overall market activity remains calm, reflecting some caution from retail investors due to ongoing uncertainties around US trade policies.
Last week, President Donald Trump introduced new tariffs affecting 14 countries, set to begin on August 1. Alongside this, the recently signed “One Big Beautiful Bill Act” (OBBBA) has sparked significant attention. This bill, projected to increase the US federal deficit by up to $4 trillion, could have far-reaching effects on the economy and Bitcoin may be one of the biggest beneficiaries.
Why the New Bill Could Boost Bitcoin’s Price
Experts like Ryan Lee, Chief Analyst at Bitget Research, believe this bill could push Bitcoin’s price up to $120,000 by the end of July. He points to several factors fueling this optimism: a strong stock market, expected increases in the money supply, and expansive government spending, all of which tend to boost Bitcoin’s appeal as a hedge against inflation.
With the US already facing a massive debt of over $36 trillion, investors are increasingly turning to cryptocurrencies like Bitcoin and Ethereum as safer stores of value. Vugar Usi Zade, Bitget’s COO, highlights that the new bill might accelerate this trend by further devaluing the US dollar, making digital assets more attractive.
Regarding the tariffs, Zade notes that the crypto market has already priced in much of the uncertainty from ongoing trade tensions. While some short-term price dips might happen around the new tariff deadline, the long-term impact is expected to be limited.
Technical and Regulatory Developments Supporting Bitcoin
Adding to the positive outlook, Trump is pushing for quick approval of the GENIUS Act, a bill that aims to clarify regulations for stablecoins digital currencies pegged to the US dollar. This clarity could open the doors for more institutional investors to enter the crypto space, bringing additional liquidity and support to the market.
Technically, Bitcoin looks strong. The price is holding above key moving averages, signaling healthy momentum. If it breaks through the $110,500 resistance level, we could see even higher gains soon, with support levels likely holding above $100,000.
In short, with growing institutional demand, major fiscal policies in play, and solid technical signals, Bitcoin seems poised for an exciting ride in the coming weeks potentially reaching new all-time highs.
