Bitcoin’s recent surge to $107,700 has sparked a mix of optimism and skepticism among market observers. The cryptocurrency’s rebound from below $100,000 has drawn significant attention, but analysts remain divided on the sustainability of this recovery. Il Capo of Crypto, a prominent pseudonymous analyst, suggests that the recent gains in Bitcoin and altcoins could be temporary, describing them as “dead cat bounces” similar to past bear market recoveries. This perspective is supported by the performance of altcoins, which have shown signs of retracing their gains, with notable players like Solana regressing to former ranges.
Michaël van de Poppe, another well-known analyst, offers a contrasting view. He anticipates that Bitcoin might achieve new highs if it surpasses the $108,900 resistance level. However, the overall market sentiment remains divided, with financial concerns persisting about the potential for a price fall if Bitcoin’s momentum falters. The ongoing debates underscore the uncertainty in the crypto market, with analysts warning of a possible continuation of bearish trends seen in past cycles. Future financial and technological developments will play a crucial role in determining the market’s direction.
Bitcoin’s price action has been volatile, with fluctuations between $107,194 and $108,489 over a 24-hour period. This volatility is partly attributed to the ongoing political debates surrounding President Trump’s proposed tax-and-spending package, which includes approximately $3.8 trillion in tax cuts, targeted spending reductions, and increased funding for defense and border security. The bill aims to make permanent many of the tax breaks from Trump’s 2017 Tax Cuts and Jobs Act, including eliminating taxes on tips, overtime pay, and certain auto loans. The child tax credit would rise to $2,200 under the Senate version, while deductions for seniors would increase temporarily. However, to offset these tax cuts, Republicans propose significant cuts to Medicaid and nutrition programs, sparking fierce debate within the party.
Moderate Republicans from high-tax states are advocating for a higher cap on state and local tax deductions (SALT), while conservatives are pushing for deeper spending cuts, particularly targeting Medicaid. These internal disagreements complicate efforts to secure the narrow Republican majorities needed in both chambers to pass the bill, which Democrats uniformly oppose as favoring the wealthy and worsening inequality. Trump’s social media message reflects an attempt to balance these competing pressures—urging fiscal restraint to satisfy conservatives while emphasizing that robust economic growth will compensate for revenue losses and help reduce deficits over time. This supply-side economic approach projects that growth will “make it all up” despite near-term increases in the national debt, which nonpartisan analysts estimate could add trillions to the existing debt.
Crypto analyst Will Clemente’s reaction on X (formerly Twitter) shortly after Trump’s post captures a common market sentiment: “How can you read this and hold long term US treasuries at current yields lol… Also, how can you read this and not hold any Bitcoin or gold.” Clemente’s skepticism toward long-term U.S. Treasuries reflects concerns that the bill’s deficit-financed tax cuts and modest spending cuts signal a loose fiscal policy that could fuel inflation and currency debasement. In this context, traditional fixed-income assets like Treasuries may appear less attractive, as rising deficits and potential monetary accommodation threaten bond values. Conversely, hard assets such as gold and Bitcoin are increasingly viewed as stores of value and hedges against inflation and fiscal risk. The expectation of sustained deficits and political challenges to fiscal discipline bolster demand for these inflation-resistant assets.
With the Senate racing to finalize the bill before the July 4 holiday, Trump’s call for unity and moderation highlights the high stakes and political challenges in passing one of the most consequential fiscal packages in recent history. The bill’s fate remains uncertain as lawmakers negotiate to balance tax relief, spending cuts, and political feasibility. The technical analysis of Bitcoin’s price movement from June 28 15:00 to June 29 14:00 UTC shows a 1.21% intraday range, with support established at $107,300 and multiple rebounds during the 02:00–03:00 window. Volume peaked at 7,538 BTC between 08:00 and 11:00 UTC on June 29, confirming upward momentum. However, during the final session hour (13:05–14:04 UTC), BTC fell from $108,219 to $108,059, forming a descending channel. A 130 BTC volume spike at 13:35 coincided with a sharp dip to $108,030, which was tested and held. The final intraday rally pushed the price back toward $108K before fading slightly by 22:22 UTC to $107,937.
