As fireworks lit up the sky on Independence Day, the U.S. government lit a fiscal fuse of its own.
President Donald Trump signed a sweeping tax and spending measure into law, sending ripples through financial markets and reigniting the inflation debate.
The legislation, which narrowly passed Congress, raises the U.S. debt ceiling by a staggering $5 trillion. Critics, including Elon Musk, warn that the move could devalue efforts to reduce public debt and flood the economy with excess liquidity. Musk pointed to Dogecoin’s symbolic savings of $160 billion and questioned its relevance in the face of such massive spending.
Bitcoin, meanwhile, is emerging as a key beneficiary of this fiscal pivot. With the money supply rising and investor sentiment shifting toward inflation hedges, BTC has seen growing interest from both institutional players and retail traders. The currency’s capped supply and Trump’s crypto-friendly stance are helping drive a bullish narrative, especially as geopolitical tensions ease and risk appetite grows.
Despite resistance near $110,000, analysts believe Bitcoin could be gearing up for a significant breakout. Technical indicators hint at short-term weakness, but broader macro signals — including ETF inflows and the weakening dollar — point to potential explosive growth.
A similar pattern unfolded after the 2023 Fiscal Responsibility Act, when Bitcoin soared nearly 200%. If history rhymes, the current setup could be laying the groundwork for another historic rally.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly 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 passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoin-set-to-soar-after-trump-signs-massive-spending-bill/