During the final week of Q2 2025, Bitcoin briefly fell to $105,000 following political news from Washington. However, the dip was short-lived, and BTC quickly regained momentum, reflecting strong market confidence.
Source: CoinGecko
Two major camps have emerged with differing views on the short-term Bitcoin price prediction:
This divergence reflects the complexity of current market conditions, where macro forces and political decisions are directly impacting investor sentiment.
On July 1st, the Senate narrowly passed President Donald Trump’s massive $5 trillion economic legislation, informally dubbed “One Big Beautiful Bill.” The bill:
After a dramatic vote in the Senate, the House followed with final approval on July 3rd, setting the stage for Trump to sign the bill into law on July 4th.
Initially, the crypto market reacted with slight weakness, likely due to investor uncertainty. The sharp dip in Bitcoin price to $105K midweek coincided with this legislative news.
Source: QuantifyCrypto
While the bill introduces substantial government spending, many analysts argue this could be long-term bullish for Bitcoin. Here’s why:
This has led some to draw parallels with the 2020 stimulus-driven crypto rally, suggesting we may be in the early stages of a similar cycle.
Tesla CEO Elon Musk voiced strong opposition to the bill, criticizing its cuts to clean energy programs and the expansion of the federal deficit. In a surprising twist, Musk hinted at the possibility of launching a third political party in response.
Never one to back down, Trump fired back, even suggesting that Musk could face deportation, escalating tensions between the two tech and political giants.
This feud adds another layer of unpredictability, especially as Musk remains one of crypto’s most influential voices.
Another key development during the week was the removal of a crypto tax relief amendment. This decision disappointed many in the mining and staking sectors, who had hoped for a more favorable regulatory landscape.
However, there’s a growing discussion in Washington around the idea of a U.S. Strategic Bitcoin Reserve, a move that could fundamentally shift how the government approaches digital assets.
While some institutions like Standard Chartered believe it’s possible, price targets depend on broader economic conditions, adoption, and market sentiment.
In the short term, it created volatility. Over the long term, it may boost Bitcoin’s appeal as a hedge against inflation and excessive government spending.
That depends on your risk tolerance. While fundamentals are strong, expect short-term volatility. Always do your own research.
Potential factors include regulatory crackdowns, negative macroeconomic data, or geopolitical instability.
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