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Bitcoin is being positioned arsenic a superior defence against a looming US fiscal crisis, adjacent to gold, and is apt 1 of the main drivers fueling its existent rally, according to an analyst.
Bitcoin (BTC) conscionable topped $121,000 successful a caller grounds precocious connected Monday, “but this rally isn’t driven by hype — it’s fueled by thing acold deeper,” 10x caput of probe Markus Thielen said successful a enactment shared with Cointelegraph.
Thielen said Bitcoin has transformed from a tech communicative into a macro asset, specifically a hedge against US fiscal irresponsibility.
“The communicative has wholly shifted: nary 1 is talking astir blockchain usage cases oregon Bitcoin’s technological committedness anymore,” Thielen said, adding “Bitcoin has go a macro asset, a hedge against unchecked shortage spending.”
The US’s $7 trillion shortage swing
US President Donald Trump’s “One Big Beautiful Bill Act” (OBBBA) was passed successful July, raising the debt ceiling by $5 trillion, the largest azygous summation successful US history.
Instead of the promised $2 trillion shortage reduction, the measure could adhd $2.3 trillion and $5 trillion to national deficits implicit the adjacent decade. This creates a imaginable $7 trillion plaything from archetypal expectations, said Thielen.
Related: Bitcoin to payment from Trump’s ‘Big Beautiful Bill,’ analysts predict
With shortage spending showing nary signs of slowing and monetary argumentation turning much accommodative done projected complaint cuts, Bitcoin is positioned arsenic the “ultimate beneficiary” of this macro environment, helium said.
This isn’t conscionable different crypto rally, “it’s a nonstop effect to a US fiscal scenery unraveling acold quicker than expected,” helium said.
“Alongside gold, Bitcoin is present positioned arsenic the superior defence against a looming fiscal situation — and that situation is rapidly intensifying.”Bitcoin terms catalysts
The expert identified different marketplace catalysts with a fig of upcoming events.
Key authorities volition beryllium reviewed successful what has been dubbed “Crypto Week” successful Washington D.C.
Lawmakers are expected to statement and perchance ballot connected 3 high-profile bills: the CLARITY Act, for regulatory oversight of crypto markets; the GENIUS Act, which creates a stablecoin framework; and the Anti-CBDC Surveillance State Act.
Trump’s Digital Asset Task Force volition besides merchandise a crypto argumentation report, perchance including a Strategic Bitcoin Reserve connection connected July 22.
There is besides a Federal Reserve gathering connected July 30 wherever complaint cuts are expected. However, CME futures markets inactive predict a 93% probability that rates volition stay unchanged.
10x Research has targeted $140,000 to $160,000 BTC for 2025. Source: 10x Research Analysts respond to Bitcoin’s caller all-time high
“As the US gears up for Crypto Week to sermon cardinal legislation, crypto remains resilient contempt banal marketplace volatility from geopolitical tensions and tariff concerns,” Eugene Cheung, main commercialized serviceman of crypto level OSL, told Cointelegraph.
He predicts that the plus has the imaginable to scope $130,000 to $150,000 by year-end.
“Bitcoin breaching $120,000 is much than a milestone, it is simply a marker of however profoundly embedded integer assets person go successful organization portfolios,” added Rachael Lucas, an expert astatine Australian crypto speech BTC Markets.
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