The price of $BTC has risen
-The most famous cryptocurrency in the world- by about 60 percent since its lowest level in April 2025, recording a record high of over $118,000.
Meanwhile, the US dollar has had its worst start since 1973, falling by about 11 percent over six months, so how did the cryptocurrency manage to gain new ground and surpass the $110,000 barrier that was seen as a significant hurdle for Bitcoin.
As April 2025 approached, the price of Bitcoin was steadily declining due to trade war fears, and on April 9, tariffs were postponed for 90 days, causing Bitcoin to reach its lowest levels.
On April 20, the real rise of Bitcoin began without any major news after days of delays, so what happened?
$BTC and hedging against policy fluctuations
It is clear that the story of cryptocurrencies has become much more than just a decentralized currency; it has become a hedge alongside gold against America's biggest crisis, which is the trade deficit and excessive federal government spending.
Bitcoin and gold indicate a clear story: the crisis is worsening.
And when American billionaire Elon Musk announced his withdrawal from the government efficiency administration, this coincided with the sudden rise in the value of Bitcoin that began on April 20 and continues to this day.
Musk's withdrawal from the government efficiency administration was the first indicator of how severe this crisis is, followed by a public dispute between Elon Musk and Trump.
As the market began to price in the passing of President Trump's 'big beautiful bill,' the value of Bitcoin rose, and this law is expected to add up to $5.5 trillion to US debt, giving Bitcoin more momentum.
On June 22, the price of Bitcoin fell to a support level of $100,000, and on July 1, the chances of passing the big beautiful bill increased, on July 3, it was passed by the US House of Representatives, and on July 4, Trump signed it into law, causing the price of Bitcoin to jump to a record level of $118,000.
Dollar vs $BTC
At the same time, the dollar is trading at its lowest level since March 2022, having fallen by 10.8 percent in the first half of 2025, its worst start since 1973.
The year 1986 did not see a drop in the value of the dollar amid rampant inflation as it is now, which makes the situation all the more interesting.
Even with President Trump's sending of 'tariff identification messages' and escalating the trade war, the dollar continues to decline, which is the exact opposite of what we saw as we approached April 2025.
Historically, the trade war led by the United States is supposed to strengthen the US dollar, not weaken it.
Even with the Federal Reserve's stance - the US central bank - and its 'wait and see' approach, the dollar is still declining.
The minutes of the Federal Reserve meeting in June showed that many policymakers expect not to lower interest rates in 2025, which would also strengthen the dollar, but what is happening is the exact opposite.
Market reactions indicate a belief that America cannot sustain its current financial path for long without major negative economic repercussions, which is evident from the rise of both gold and Bitcoin by more than 100 percent since 2021.