Bitcoin Eyes 40% Gains as Trump’s Spending Bill Advances

Bitcoin could see a major price rally as traders anticipate a potential 40% surge if President Donald Trump’s “Big Beautiful Bill” is signed on Independence Day. The bill, which includes substantial new spending measures, is expected to add to the already rising U.S. debt levels, a scenario that historically aligns with Bitcoin price increases. Analysts note that markets tend to respond positively when U.S. borrowing increases, viewing it as a sign of added liquidity. According to estimates from prediction platform Kalshi, the U.S. national debt could reach $40 trillion in 2025 if the bill is enacted, up from $23.2 trillion at the start of 2020. “This would mark a nearly $17 trillion increase in six years, levels of borrowing never seen before in the country’s history,” noted The Kobeissi Letter in a recent analysis. While such borrowing raises concerns about fiscal sustainability, it has often created favorable conditions for Bitcoin as investors hedge against potential currency debasement. Historical Trends Support Bullish Outlook Crypto market watchers point to past instances where significant U.S. spending bills coincided with Bitcoin price surges. In late 2020, following Trump’s signing of a COVID-19 relief bill, Bitcoin rallied by 38% within weeks. If similar market behavior follows the signing of the “Big Beautiful Bill,” Bitcoin could surpass the $150,000 mark, building on its previous cycles of gains amid expanding debt levels. Additionally, the rising global M2 money supply continues to provide a supportive backdrop for Bitcoin. M2, a broad measure of the money supply, has shown a clear correlation with Bitcoin’s price movements, often leading to upward price trends with a slight delay. On Thursday, global M2 reached a record high of over $55.4 trillion, signaling continued liquidity expansion that could further fuel Bitcoin’s upward momentum. Market Participants Remain Watchful Trader and analyst Rekt Capital noted that M2 can continue rising even after Bitcoin experiences a bull market top, suggesting the current liquidity environment may support extended bullish conditions for BTC. As Independence Day approaches, market participants remain attentive to any developments regarding the bill’s passage. With fiscal policies and liquidity trends aligned in Bitcoin’s favor, traders and institutional investors are positioning for potential upside in the coming weeks. For now, Bitcoin’s price trajectory will likely depend on both macroeconomic developments and signals from the U.S. government’s fiscal stance. Many see this as a defining moment for crypto markets in 2025. The post Bitcoin Eyes 40% Gains as Trump’s Spending Bill Advances appeared first on TheCoinrise.com .

Source: The Coin Rise