Donald Trump and Elon Musk may not be seeing eye-to-eye on many issues, but both have played a part in pushing Bitcoin’s price to its best weekly close ever at $109,200—nearly $140 higher than the previous record set in May.
Analysts expect the upward momentum to continue, with Bitcoin potentially reaching as high as $136,000 by July.
This bullish sentiment stems from several factors fueling optimism among traders who have positioned themselves to profit should Bitcoin breach the $112,000 level.
The Trump Effect
On Sunday, President Trump announced a delay for the next round of tariffs until August 1, providing markets with a temporary reprieve from potential trade war escalation.
Amidst confusion surrounding the final terms, the delay combined with Trump’s recent comprehensive spending and tax package has driven risk assets, including Bitcoin, higher.
On July 4, Trump signed the “One Big Beautiful Bill” into law, raising the US debt ceiling by $5 trillion and making the 2017 tax cuts permanent.
Analysts have cautioned that this plan could add as much as $7 trillion to the national debt over the next decade, strengthening the argument for alternative hard assets among Bitcoin advocates.
“The currency debasement games just stepped up another level,” wrote David Brickell and Chris Mills in their Connecting The Dots newsletter.
With the dollar’s worst first-half performance in over 50 years suggesting wider economic headwinds are on the horizon, this perspective holds weight.
“The recent budget, the inflationary impact of tariffs, and Trump’s pointed comments toward the Fed don’t bode well for the overall US outlook, or the dollar,” said Jennifer Lee, a senior economist at BMO Capital Markets.
Musk Breaks Away
The escalating fiscal anxiety has also intensified political divisions, particularly between Trump and his one-time ally, Elon Musk.
Elon Musk has criticized the administration’s handling and the ballooning US deficit while simultaneously aligning his views with Trump’s crypto-friendly base.
Over the weekend, Musk confirmed his newly formed centrist political party would embrace Bitcoin, stating, “Fiat is hopeless, so yes,” in response to a query on X.
Musk, who has fluctuating public stances on cryptocurrency, has previously warned about the “bankrupt the country” trajectory of the US deficit.
The brewing conflict between the two prominent political figures adds complexity to the market environment that analysts anticipate may trigger further Bitcoin gains once Middle East tensions ease.
Adding to the positive outlook, Bitwise’s European Head of Research noted that central banks globally are continuing to cut interest rates, infusing liquidity into the global economy.
Lower interest rates typically encourage investment in risk-on assets like cryptocurrencies.
Ethereum experienced a parallel rise, climbing 2.6% to $2,580 during the same period.
