Bitcoin (BTC) Soars Past $106K as Senate Greenlights $3.3 Trillion Spending Spree

Bitcoin rockets to new heights—fueled by fiscal fireworks in Washington.

Senate's $3.3 trillion bill sparks crypto rally

Politicians print, hodlers win. Again.

Meanwhile, traditional finance bros still can't decide if BTC is 'digital gold' or a 'Ponzi scheme'—pick a lane.

TLDR

• Bitcoin surged above $106,000 following Senate passage of Trump’s $3.3 trillion spending bill with 51 votes after VP JD Vance’s tie-breaking vote
• Weekly RSI climbs toward upper boundary, with analysts suggesting BTC could reach new all-time high around $140,000 if historical patterns hold
• Monthly chart analysis shows Bitcoin has confirmed breakout from range, with bullish engulfing candle and symmetrical triangle formation
• Crypto tax benefits were dropped from the legislation despite industry pressure, including Senator Lummis’s failed amendment for staking rewards
• Negative funding rates indicate bearish sentiment that could fuel potential short squeeze and price rebound

Bitcoin has climbed above $106,000 following significant legislative developments in Washington. The U.S. Senate passed a massive $3.3 trillion tax and spending bill with a narrow 51-vote margin after Vice President JD Vance cast the tie-breaking vote.

The legislation, dubbed Trump’s “One Big Beautiful Bill,” includes $4.5 trillion in tax cuts paired with $1.2 trillion in spending reductions. Market participants responded to the inflationary implications by moving funds into Bitcoin as a hedge against fiscal expansion.

The U.S. Senate has passed the Trump-backed “One Big Beautiful Bill” which now heads back to the House for consideration and a final vote.

This bill extends tax cuts for the wealthy, overhauls programs like Medicaid and SNAP, increases border and military spending, along with a… pic.twitter.com/Esu6OhxBXM

— Pop Base (@PopBase) July 1, 2025

Bitcoin rebounded from an intraday low of $105,689 to recover above the $106,000 level. The cryptocurrency tends to perform well during periods of increased government spending and debt growth, as investors seek alternatives to traditional assets.

The bill’s passage created buying pressure as traders anticipated the long-term effects of expanded federal spending. Bitcoin’s fixed supply of 21 million coins contrasts with the unlimited printing capacity of fiat currencies, making it attractive during fiscal uncertainty.

Despite crypto industry lobbying efforts, the final legislation excluded various digital asset tax amendments. Senator Cynthia Lummis attempted to include provisions that would exempt staking rewards from taxation and provide better treatment for businesses holding digital assets.

The proposed amendments aimed to modernize U.S. crypto taxation policies and encourage blockchain innovation. However, time constraints prevented these measures from being included in the final bill text.

Technical Analysis Points to Further Upside

From a technical perspective, Bitcoin’s chart structure remains constructive. The weekly Relative Strength Index is climbing toward its upper trendline after bouncing from lower levels in April 2025.

#Bitcoin Still Has Fuel in the Tank 🔥

Weekly market structure remains strong with a series of higher highs and higher lows.

RSI is pushing towards its trendline. pic.twitter.com/zIueBPyc2R

— Titan of Crypto (@Washigorira) June 30, 2025

Historical data suggests bitcoin often peaks when the weekly RSI reaches this upper boundary. If current patterns hold, analysts project potential targets around $140,000 for a new all-time high.

Bitcoin currently trades about 4.7% below its existing record of $111,814, set on May 22. The monthly timeframe shows a confirmed breakout from a previous trading range, according to technical analysts.

Market Structure Shows Bullish Signs

Chart patterns reveal a bullish engulfing candle formation and potential breakout from a symmetrical triangle. These technical setups often precede upward price movements in cryptocurrency markets.

Funding rates have turned negative, meaning short position holders are paying long position holders. This dynamic can lead to short squeezes as bearish traders face increasing costs to maintain their positions.

The current market structure displays a series of higher highs and higher lows, indicating underlying strength. Buy-side volume will be crucial for sustaining any breakout momentum from current levels.

Bitcoin is trading at $106,665 at press time, representing a 1% decline over the past 24 hours. The legislation now moves to the House of Representatives for further consideration and potential modifications.