Bitcoin is buzzing near record highs, and a new tax reform signed by President Trump might just be the rocket fuel it needs to hit $120,000 by the end of July. Let’s break down how this “Big Beautiful Bill” could shake up the crypto market.
Bitcoin (BTC) is holding strong above $108,000 as of Tuesday, July 8, 2025, after a sharp rally last week that saw it briefly cross $110,000. While trading volumes are quieter than usual—partly due to hesitant retail investors and uncertainty over U.S. tariff policies—there’s a new player in town that could drive Bitcoin to new heights: the One Big Beautiful Bill Act (OBBBA), signed by President Donald Trump on July 4.
This major tax reform, projected to add $3 to $4 trillion to the federal deficit over the next decade, is creating waves in financial circles. Experts believe it could act as a catalyst for Bitcoin’s next big move. Here’s why this matters for crypto enthusiasts and investors alike.
What’s the Deal with Trump’s Tax Bill?
The OBBBA isn’t just another piece of legislation—it’s a bold fiscal move that could increase the U.S. money supply and fuel expansive government spending. According to Bitget Research Chief Analyst Ryan Lee, this kind of economic environment is a perfect storm for Bitcoin. “With record-high U.S. stock markets, potential monetary expansion, and strong institutional demand, Bitcoin could easily climb to $120,000 by the end of July,” Lee told FXStreet in an exclusive interview.
The logic is simple: when the government prints more money or ramps up spending, the value of the U.S. dollar (USD) can weaken. Investors often turn to assets like Bitcoin as a hedge against currency devaluation. Add to that the U.S. national debt, currently sitting at a staggering $36.21 trillion, and you’ve got a recipe for diversification into digital assets. Bitget’s COO, Vugar Usi Zade, noted, “This bill could push more capital into Bitcoin and Ethereum as investors look for alternatives to a devaluing dollar.”
Bitcoin’s Bullish Momentum: Numbers Don’t Lie
The crypto market is already showing signs of strength. Last week, Bitcoin-related investment products saw inflows of $790 million, according to CoinShares, with total assets under management reaching $188 billion. Most of this cash came from U.S. investors, signaling growing confidence despite a slight slowdown compared to previous weeks.
On the technical side, Bitcoin’s price chart looks promising. Trading at $108,712 as of this writing, BTC is above a key descending trendline and supported by upward-moving averages like the 50-day EMA at $105,274. If it breaks past the recent resistance at $110,527, the path to $120,000 looks wide open.
Tariffs and Stablecoins: More Pieces of the Puzzle
While the tax bill grabs headlines, other factors are at play. President Trump recently imposed new tariffs on 14 countries, with a deadline set for August 1, sparking short-term market jitters. However, Zade believes the crypto market has already started pricing in this uncertainty, and the impact may be fleeting.
Meanwhile, Trump is pushing for the quick passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) bill before Congress recesses in early August. If passed, this legislation could bring much-needed clarity to the stablecoin space, encouraging institutional players to dive deeper into crypto. Stablecoins, often pegged to the USD, act as a bridge for liquidity into assets like Bitcoin, making this a potential game-changer.
Why Should You Care?
For anyone dabbling in crypto or just curious about Bitcoin’s wild ride, the OBBBA could be a turning point. It’s not just about a bigger deficit—it’s about how fiscal policy might push more money into alternative assets. With institutional interest still strong and technical indicators pointing up, Bitcoin’s journey to $120,000 by July’s end doesn’t seem far-fetched.
Of course, risks remain. Tariff tensions and market fluctuations could cause short-term dips. But as Zade puts it, “The broader trend for Bitcoin remains bullish, especially with regulatory clarity on the horizon.” So, whether you’re a seasoned trader or a newbie stacking sats, keep an eye on how this “Big Beautiful Bill” unfolds—it might just make your portfolio a lot more beautiful too.
