July 2025 began with a notable rise in Bitcoin's price, surpassing $110,000. This surge in cryptocurrencies is driven by a number of political factors, including significant legislation in the U.S.
Bitcoin Surge: Shorts Liquidated
Over **$110 million** in shorts were liquidated within an hour as Bitcoin broke above $109,000. Liquidations often lead to "forced buys," converting bearish positions into demand for Bitcoin and helping it reach new targets in the $112,000–$116,000 range.
The "One Big Beautiful Bill"
The bill represents approximately **$3.3 trillion** in tax cuts, military spending, and border security funding, offset by cuts in healthcare and green energy. Provisions within the bill direct the Treasury to modernize payment laws and establish a **U.S. Strategic Bitcoin Reserve**. The bill has passed the Senate, with the House expected to finalize it by July 4.
Regulatory Changes and Their Consequences
The U.S. has officially lifted restrictions on exporting advanced chip-design software to China, significantly easing global tech collaboration. This helps keep mining costs stable and supports Bitcoin's long-term price sustainability. Additionally, Trump's call for Federal Reserve Chair Jerome Powell to resign may trigger changes in monetary policy that would positively affect crypto markets.
Political developments have had a substantial impact on the cryptocurrency market in July 2025. If the bill is signed and Jerome Powell steps down, it could foster new growth for both Bitcoin and Ethereum.
