Bitcoin Surges Past $109K as Senate Approves Trump’s Big Beautiful Bill
Crypto Market Sees Gains Amid Political Developments
Market Recovery After Volatility
The cryptocurrency market experienced a modest recovery on Wednesday, bouncing back after a couple of turbulent days. This positive shift was influenced by two significant events: the Senate’s approval of President Donald Trump’s “One Big Beautiful Bill” (OBBA) and the announcement of a new trade agreement with Vietnam.
Key Cryptocurrency Performance
bitcoin (BTC) rose by 3.2% in the last 24 hours, trading at approximately $109,400. ethereum (ETH) surged nearly 6%, reaching $2,560. Other notable performers included Solana (SOL), which increased by 3.6% to $153, and XRP, which climbed 3.2% to $2.26.
Market Capitalization and Liquidations
The total market capitalization for cryptocurrencies grew by 1.3% to $3.5 trillion. However, leveraged liquidations amounted to $343 million, with bitcoin leading the way at nearly $121 million, followed by ethereum at $93 million and other altcoins at $31 million.
ETF Trends and Outflows
On July 1, U.S. spot bitcoin exchange-traded funds (ETFs) experienced outflows totaling $342 million, ending a 15-day streak of inflows. Conversely, spot ethereum ETFs saw inflows of nearly $41 million, as reported by SoSoValue.
Political Context: OBBA and Trade Deal
The market’s reaction coincided with the Senate’s passage of OBBA, a contentious spending bill expected to increase the federal deficit by $3 trillion over the next decade. The bill passed with a 50-50 vote, with Vice President JD Vance casting the deciding vote.
In tandem, President Trump announced a new trade deal with Vietnam, which includes a 20% tariff on Vietnamese imports and a 40% tariff on “transshipping.” This agreement comes just before the expiration of his “reciprocal” tariff program.
Expert Insights on Market Trends
Mike Cahill, co-founder and CEO of Douro Labs, noted that bitcoin‘s rise above $109,000 indicates a shift in institutional sentiment, as macroeconomic factors are attracting new investments into crypto as a diversification strategy. He emphasized the importance of looking beyond short-term price fluctuations to grasp the broader context.
Kyle Chassé, CEO of MV Global and founder of PAID, commented on the implications of the OBBA, stating that the U.S. government has effectively issued a record $5 trillion IOU. He believes that this significant increase in debt will lead to a surge in spending, consequently expanding the U.S. and global M2 money supply—a metric that has historically correlated with bitcoin‘s price trajectory. Chassé predicts that bitcoin could reach $225,000 by year-end.
