This week, Bitcoin finished the second quarter with nearly a 30% gain, despite a brief price downturn following the approval of Trump’s bill. Analysts remain divided on the short-term outlook.
Bitcoin Market Analysis
Bitcoin traded around $109,000 as of July 4, close to its all-time highs. After a slight drop to $105K midweek, triggered by political events, prices quickly rebounded.
Analysts continue to provide mixed forecasts: some, like Standard Chartered, are optimistic with a $200,000 year-end target, while BitMEX co-founder Arthur Hayes warns of a potential dip to $90K before another rally.
Political Events and Their Impact
A major development this week was the passage of Donald Trump’s $5 trillion budget bill, which makes individual tax cuts permanent and rolls back certain programs like Medicaid expansion. Following a narrow Senate vote on July 1, the House approved the bill on July 3. Trump is expected to sign it on July 4.
The crypto market reacted with temporary weakness, but many view the bill’s inflationary effects as potentially bullish for Bitcoin. Analysts highlight the positive influences of similar fiscal packages in the past.
Overview of the Cryptocurrency Situation
Tesla CEO Elon Musk criticized the bill's cuts to clean energy, escalating tensions with Trump. In the wake of the law's weakness, a crypto tax relief amendment was removed, disappointing miners and stakers. Discussions about a U.S. strategic Bitcoin reserve continue.
While Bitcoin remains stable for now, regulatory uncertainty and political risks are key variables in the coming weeks.
Bitcoin continues to be influenced by political changes, and the analysis of short-term forecasts shows a range of opinions among experts. Future economic and political events may significantly impact cryptocurrency dynamics.
