Bitcoin (BTC) has dropped below $106,000 as President Donald Trump’s “big beautiful bill” awaits the final vote from the US Senate. Bitcoin price is trading at $105,905 today, July 1, with a 1.22% decline.
The sharp dip from $107,855 to the current price has sparked fresh concerns on whether the king coin could drop to $100,000.
Bitcoin Price Volatility Spikes as Senate Votes on Big Beautiful Bill
The US Senate is currently on a marathon vote-a-rama for President Trump’s “One Big Beautiful Bill.” During the vote-a-rama, lawmakers propose amendments that are rapidly voted upon, as Trump anticipates that this legislation will get the Senate’s approval on July 4.
The ongoing process is causing volatility in Bitcoin price, with the value fluctuating between a daily swing high of $107,855 and a low of $105,878. Meanwhile, more than $66 million has been liquidated from the BTC market within 24 hours, according to Coinglass data.
The drop follows a renewed feud between Trump and Tesla CEO Elon Musk over this bill. As we previously reported, the crypto market is shaky after Musk revealed that if the proposal passes, it will trigger inflation.
However, there is some optimism from a section of crypto traders who note that even if inflation rises, it will be bullish for the BTC price. Popular analyst Max Keiser notes that the legislation will be “a Bonanza for Bitcoiners.”
Meanwhile, Senator Lummis has proposed amendments to this bill that will have a bullish implication on Bitcoin price. In an X post, she said,
“It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower.”
Bitcoin advocate Matthew Pines also notes that among Lummis’ amendment is a “Bitcoin de minimis tax exemption” and has urged US voters to call their Senators to back the fix.
BTC Risks Slip to $100,000 Before Recovery
The daily timeframe chart shows that BTC price may be on the edge of a drop towards $100,000 if uncertainty remains. The MACD line hints at such a move as it tips south and nears a downward crossover with the signal line, which may support a bearish Bitcoin price prediction.
At the same time, BTC has crossed below the midline of an ascending parallel channel, a sign that bears could be making an attempt to regain control. If the price can make a decisive close below this support, the lower target lies at the 78.6% Fibonacci level of $104,067. Another close below this key Fib level could then see Bitcoin falling to $97,766.
The RSI is also tipping south, a sign that the bullish momentum that has been aiding the upward trend is weakening. If this indicator drops below the mean level of 50, it will be a confirmation that Bitcoin may slip to $100,000.
All in all, as a fresh macro factor comes into play, bears may attempt to push the Bitcoin price towards $100,000 before buying activity rises again.
On-chain Data Shows Falling Demand
The Bitcoin Apparent Demand metric from CryptoQuant shows a significant decline in fresh buying interest. This metric has flipped negative to stand at -37,000 BTC for the first time in one month, a sign that traders are bearish towards BTC price.
Despite accumulation tactics such as the recent move by Kazakhstan to launch a national crypto reserve, the lack of retail demand will likely impact the price.
To conclude, Bitcoin price is at an inflection point as US legislators look to vote on the “One Big Beautiful Bill. Concerns about a surging US debt and inflation have caused bearish concerns, but some traders are optimistic that tax changes will fuel gains. However, as demand falls and buying pressure weakens, BTC may fall towards $100,000.