US Senate advances $5 trillion debt ceiling increase, potentially benefiting Bitcoin price
From Cointelegraph
July 2, 2025 3:40 PM:
- Bitcoin’s price gains are not consistently linked to US debt ceiling increases. Investors believe the US dollar will lose value due to fiscal policy. Senators advance a $5 trillion debt ceiling increase, sparking controversy. Analysts predict a potential BTC all-time high in 2025.
- Past US debt ceiling increases led to bearish outcomes for Bitcoin. Despite expectations, Bitcoin stayed at $105,000 as Trump’s administration pushed for the increase. The proposed legislation could add $3.3 trillion to the federal deficit, passing by a one-vote margin in the Senate.
- US Treasury Secretary claims the bill controls debt, criticized by NorthmanTrader founder. Raising the debt ceiling aligns with modern monetary theory, suggesting money creation funds government expenditures. Focus shifts to the Federal Reserve’s response to maintain interest rates and the US dollar’s strength.
- Higher US Treasury yields indicate reduced investor confidence, historically correlating with Bitcoin’s price. Bitcoin’s resilience above $105,000 while the 10-year Treasury yield falls shows signs of decoupling. Broader markets anticipate a weaker US dollar, benefiting assets like Bitcoin, equities, and commodities.
Read more at CoinTelegraph: Big Beautiful Bill, $5T Debt Ceiling To Benefit BTC price?