Bitcoin Climbs as Trump’s $5 Trillion Bill Sparks Market Volatility

• Bitcoin sees nearly 30% gains, closing around $109K by July 4th.
• Political tensions rise with passage of Trump’s $5 trillion bill.
• Analysts suggest Bitcoin could surge to $200,000 or drop to $90K.
• Market reacts to Trump’s bill with temporary weakness in crypto.
• Elon Musk criticizes cuts to clean energy in the new bill.

Bitcoin’s Recent Performance Amid Political Upheaval

Bitcoin is having a bit of a bounce back week, which is good news considering it just wrapped up the second quarter with impressive gains nearing 30%. By the time July 4th rolled around, Bitcoin was trading close to $109,000, edging toward its previous all-time highs. Of course, in the middle of the week, we saw a dip to around $105K, likely spurred by the Senate’s approval of a hefty budget plan from Donald Trump, but the king of crypto quickly clawed its way back up.

Mixed Analyst Sentiments on Bitcoin’s Prospects

Analysts, predictably, are somewhat split on the short-term scenario. On one side, you’ve got Standard Chartered holding a positive stance, aiming for a year-end target of $200,000. On the other hand, there’s BitMEX co-founder Arthur Hayes, who’s sounding the alarm with warnings of a possible drop to $90K before another surge. So, clearly, it’s a bit of a mixed bag as investors look ahead.

Legislation Passed Amid Market and Political Turbulence

The major story this week is clearly President Trump’s $5 trillion legislation, dubbed the “One Big Beautiful Bill.” This bill not only makes the 2017 individual tax cuts permanent but also lifts the debt ceiling while rolling back certain programs like Medicaid expansion and green energy incentives. The Senate managed to get this legislation through with a narrow vote on July 1st, and then on July 3rd, the House followed suit after a drawn-out wait by Democrats. Trump is expected to stamp his approval on it by July 4th, fueling ongoing market volatility. The crypto community reacted with initial worry, but many observers believe that the bill’s inflationary effects and soaring U.S. debt could provide a long-term boost for Bitcoin.

The week saw Bitcoin maintaining strength despite political turmoil due to Trump’s new bill. Split opinions from analysts on Bitcoin’s fate indicate uncertainty, with significant focus on market reactions to ongoing policy changes. As regulatory concerns linger, and the broader macroeconomic landscape evolves, all eyes are on what might unfold in the coming weeks for cryptocurrency.