Bitcoin’s record-breaking surge past $123,000 isn’t being powered by memes or momentum trading—it’s being driven by rising fears over America’s financial future.
According to 10x Research’s Markus Thielen, the cryptocurrency has evolved into a macro hedge, increasingly treated like gold amid growing concerns about runaway deficit spending.
The shift comes as the U.S. faces a historic budget crisis. President Donald Trump’s recently passed spending bill, which promised fiscal responsibility, is instead projected to increase the national deficit by up to $7 trillion over the next decade. This reversal has rattled markets and pushed investors toward assets with limited supply and independence from central banks.
Thielen argues that Bitcoin is no longer seen through a tech or blockchain lens. “Nobody’s talking about use cases anymore,” he said. “It’s now about sheltering wealth from a debt-fueled economic model.”
The next phase of this rally may be shaped by a flurry of regulatory and monetary events. A major week for U.S. crypto policy lies ahead, with Congress set to review legislation on stablecoins, market oversight, and CBDC restrictions. The Trump administration is also preparing to unveil a crypto policy report that may include a proposal for a U.S. Bitcoin reserve.
Meanwhile, the Federal Reserve will meet on July 30. While markets aren’t fully pricing in a rate cut yet, expectations for a looser monetary stance remain strong—a factor likely to benefit Bitcoin further.
10x Research sees Bitcoin targeting as high as $160,000 next year. Others, including OSL’s Eugene Cheung and BTC Markets’ Rachael Lucas, expect $130,000–$150,000 by year-end, citing increased institutional demand. As always, altcoins are following closely behind as traders take on more risk in the wake of BTC’s breakout.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoin-rally-fueled-by-fiscal-anxiety-as-u-s-debt-balloons/