Monday (June 30) marked a bullish start for Bitcoin in Asian trading, with prices climbing above $108,000. Former President Trump's comments about deficit spending reinforced optimistic prospects for Bitcoin investors.
Meanwhile, Ethereum broke through $2,440 with strong volume support, displaying bullish momentum against a backdrop of record-high U.S. equities, improved global liquidity, and easing geopolitical tensions.
Trump's Fiscal Policy Remarks Stir Markets
On June 29, Trump posted on Truth Social addressing Republican lawmakers engaged in heated debates about his proposed tax cuts and spending plans:
"To all Republicans who want to cut spending—I’m with you—but remember you’ll need to get re-elected. Don’t go too wild! We’ll recover all losses through growth, maybe tenfold over!"
This statement highlights deep divisions within the Republican Party regarding their "One Big Beautiful Bill" legislative agenda—a 900+ page proposal combining:
- $3.8 trillion in tax cuts
- Targeted spending reductions
- Additional defense and border security funding
Key provisions include making permanent several 2017 Trump tax cuts, such as eliminating taxes on tips and certain loans, while raising child tax credits to $2,200. However, proposed Medicaid and nutrition program cuts sparked intra-party conflict.
Crypto Analysts Weigh In
Cryptocurrency analyst Will Clemente responded on X:
"After reading this, would you hold long-term U.S. Treasuries? Bitcoin and gold seem like no-brainers."
This sentiment reflects growing market concerns about:
- Inflation risks from loose fiscal policies
- Potential currency devaluation
- Declining attractiveness of traditional fixed-income assets
👉 Why institutional investors are flocking to Bitcoin
Market Outlook: Volatility Ahead
With Bitcoin holding above $108,000, analysts anticipate:
- Next resistance at $112,000
- Increased volatility signals from derivatives markets
- Whale movements to centralized exchanges (a historical precursor to price swings)
Key macro events this week:
- ECB's Sintra Annual Policy Forum
- Fed Chair Powell's speech (Tuesday)
- ETHCC conference (potential catalyst for Ethereum)
FAQ: Bitcoin's Current Rally
Q: Why did Trump's comments affect Bitcoin prices?
A: His deficit-focused rhetoric heightened inflation concerns, making Bitcoin's finite supply more attractive.
Q: What’s driving Ethereum’s surge?
A: Strong institutional interest and anticipation of project announcements at ETHCC.
Q: Are whales preparing to sell?
A: Exchange inflows suggest some profit-taking, but overall sentiment remains bullish above $108K support.
👉 Expert analysis: Bitcoin's 2025 price trajectory
Legislative Uncertainty Looms
As Senate negotiations continue, the bill's fate remains uncertain. Trump’s balancing act—appeasing fiscal conservatives while promoting growth-centric policies—underscores the challenges of passing major legislation during election seasons.
Market participants will closely monitor central bank communications this week for cues on future liquidity conditions impacting both crypto and traditional assets.