According to Cointelegraph, Bitcoin (BTC) could experience a significant price increase following the anticipated signing of a substantial spending bill by U.S. President Donald Trump. The bill, referred to as the “Big Beautiful Bill,” is expected to be signed into law on Independence Day, potentially driving BTC prices up by nearly 40%. This prediction is based on historical data showing Bitcoin's positive response to increased U.S. borrowing. In late 2020, when Trump signed a COVID-19 spending bill, Bitcoin saw a 38% rise in value within weeks. Should a similar trend occur, Bitcoin could surpass $150,000.
The potential impact of the spending bill is further underscored by the projected increase in U.S. national debt, which is expected to reach $40 trillion by the end of 2025. This marks a significant rise from the $23.2 trillion recorded at the start of 2020, highlighting the unprecedented levels of borrowing. Analysts from The Kobeissi Letter have described this situation as a crisis, emphasizing the historical significance of such borrowing levels. Prediction service Kalshi has also referenced the $40 trillion figure, indicating the widespread anticipation of this financial development.
In addition to the U.S. spending bill, global liquidity trends continue to support Bitcoin's price growth. The expanding global M2 money supply has shown a clear correlation with Bitcoin's price movements, with BTC/USD historically following M2 trends with a slight delay. As of July 3, the global M2 money supply reached a new all-time high of over $55.4 trillion. This increase in liquidity is seen as a bullish indicator for Bitcoin, with analysts like Rekt Capital suggesting that M2 could continue to rise even after Bitcoin reaches a peak in its bull market. However, it is important to note that investment in Bitcoin and other cryptocurrencies carries inherent risks, and individuals should conduct thorough research before making any financial decisions.