Bitcoin traded above $107,000 over the weekend, as investor interest grew following U.S. President Donald Trump’s comments on fiscal policy. His message suggested continued government spending and large tax cuts, which many analysts believe could lead to rising inflation and growing national debt. This scenario has strengthened the case for hard assets like Bitcoin and gold as long-term stores of value.

Trump’s Economic Message Boosts Crypto Confidence

On June 29, Trump took to his Truth Social platform to urge Republican lawmakers not to go overboard with spending cuts. He stated:

“For all cost cutting Republicans, of which I am one, REMEMBER, you still have to get reelected. Don’t go too crazy! We will make it all up, times 10, with GROWTH, more than ever before.”

This message comes as his administration pushes for the approval of a massive fiscal bill nicknamed the “One Big Beautiful Bill.” The proposed legislation includes $3.8 trillion in tax cuts, plans to increase defense and border security spending, and aims to make many of the 2017 tax cuts permanent. Provisions like eliminating taxes on tips and overtime pay are also included.

The child tax credit would rise to $2,200, while deductions for seniors would temporarily increase. However, these benefits are offset by proposed cuts to Medicaid and nutrition programs, tension within the Republican party.

Political Uncertainty Adds to Economic Fears

The bill is facing pushback even within the Republican ranks. Moderate Republicans want a higher cap on state and local tax (SALT) deductions, while conservatives demand deeper cuts, especially to healthcare spending.

This internal conflict threatens the passage of the bill, which requires nearly full Republican support in both the House and the Senate. Democrats are unanimously opposed, arguing the bill disproportionately benefits the wealthy and could worsen inequality.

Trump’s messaging appears to strike a delicate balance—reassuring conservatives about fiscal restraint, while arguing that strong economic growth will ultimately reduce the deficit over time.

Still, many nonpartisan analysts estimate that the proposed legislation could add trillions more to the $36.2 trillion U.S. national debt, fueling concerns about long-term fiscal sustainability.

Bitcoin and Gold Gain from Inflation Concerns

With the U.S. seemingly headed toward continued deficit spending, market analysts are turning their attention to safe haven assets.

Bitcoin rose to $107,937 on Sunday, posting a 0.54% daily gain, while trading between $107,194 and $108,489. The price action reflects investor sentiment shifting in favor of hard assets over traditional instruments like U.S. Treasuries, which may lose appeal if inflation rises.

Crypto analyst Will Clemente posted on X (formerly Twitter), reacting to Trump’s statement:

“How can you read this and hold long term US treasuries at current yields… Also, how can you read this and not hold any Bitcoin or gold.”

Clemente’s comment highlights a growing belief that assets with fixed supply, like Bitcoin and gold, are better suited to protect against currency devaluation caused by loose fiscal policies and rising debt levels.

Bitcoin’s Role as a Hedge Strengthens

Bitcoin’s performance in this environment underlines its growing role as a hedge against inflation and fiscal uncertainty. As confidence in traditional monetary policy declines, more investors are turning to decentralized and limited-supply assets.

The expectation of persistent deficits, paired with political challenges to serious budget reform, strengthens the long-term outlook for Bitcoin. Its resilience above $107K suggests ongoing interest, especially from investors looking for protection in an uncertain macroeconomic landscape.

Final Thoughts

As the U.S. Senate works to finalize the fiscal bill ahead of the July 4 deadline, its progress—or lack thereof—will likely remain a major influence on market sentiment. If the bill passes, the bullish case for Bitcoin and other hard assets could intensify as investors look to hedge against rising debt and inflation.