Bitcoin Defies Gravity at $107K Amid US Senate’s $4.5T Spending Spree – Bullish Signal or Fiscal Folly?

Bitcoin scoffs at volatility as it locks in above $107,000—just as Washington rubber-stamps a $4.5 trillion fiscal free-for-all. Here's why crypto markets aren't blinking.

When Money Printer Goes Brrr...

The Senate's spending bill—roughly the GDP of Germany—typically sends traditional markets into a frenzy. But Bitcoin? It's trading like a Swiss watch. Either crypto's matured into a macro asset, or degenerates now see trillion-dollar deficits as background noise.

Wall Street Analysts: *Adjusts Ties*

'Store of value' narratives gain traction when fiat systems spend like sailors on shore leave. Gold bugs grumble as BTC's weekly candles outshine their shiny rock. Meanwhile, crypto Twitter memes the Fed's balance sheet into oblivion.

The Cynical Take

Let's be real—half the Senate probably thinks Bitcoin's a theme park token. Their solution to inflation? Print enough to buy every citizen a Lambo... with debt. Good luck shorting human stupidity.

Bitcoin Dips Before Quick Rebound

Based on reports from crypto exchanges, Bitcoin slid to about $106,344 just before the vote as traders held off on big bets. Once the Senate approved the bill, BTC jumped back above $107,800.

That’s a swing of roughly $1,400 in a single session, or about 1.3%. Some traders said they sold into the dip and bought back in once the outcome was clear. Others just shook their heads and waited for the next news headline.

Altcoins And Liquidations Take A Hit

Ethereum barely moved, dipping 0.3%, while XRP fell about 0.7% on the day. solana saw the biggest wobble, dropping as much as 6% during trading. In total, more than $219 million in liquidations hit the broader crypto market.

Bitcoin alone accounted for roughly $60 million of that, as Leveraged positions got squeezed when prices spiked back up.

Stocks tied to digital assets also rallied on the bill’s passage. MicroStrategy (now Strategy) shares climbed around 3.2%, and Coinbase jumped 2.3% in early trading on Tuesday. Those moves outpaced the Nasdaq’s modest gains.

The bill now goes back to the House for a final sign‑off, with Speaker Mike Johnson aiming to send it to the president’s desk before July 4.

The traders will be watching closely for the next inflation reading and for any signals from the Federal Reserve. If a rise in prices drives the Fed to more increases, crypto markets may come under new strain.

However, others view the Senate vote as another reminder that bitcoin and its cousins can move on significant political news—sometimes in ways not necessarily expected.

Featured image from Unsplash, chart from TradingView