Traders anticipate Bitcoin could surge to $136K in July as optimism builds around fiscal policy shifts and Tesla CEO’s renewed crypto advocacy
Bitcoin closed its strongest week ever at $109,200 on Sunday, setting a new record and surpassing its previous high from May by $140.
Traders are increasingly positioning for further gains, fueling speculation that the cryptocurrency is entering another major breakout phase toward new all-time highs in the coming weeks.
This momentum follows a series of political and economic developments that have reinforced Bitcoin’s appeal as a hedge against inflation and fiscal uncertainty, setting the stage for a potentially explosive second half of the year.
Trump’s sweeping economic package boosts risk sentiment
On July 4, President Donald Trump signed the so-called “Big Beautiful Bill”, which raised the US debt ceiling by $5 trillion and made his 2017 tax cuts permanent.
Experts warn this plan could add up to $7 trillion to the national debt over the next decade, fueling investor fears of inflation and weakening confidence in the U.S. dollar.
In their weekly newsletter, analysts David Brickell and Chris Mills wrote that “the currency debasement games just stepped up another level”, highlighting rising concerns over government spending and the future value of traditional currencies.
Trump also announced a delay to the next round of tariffs until August 1, providing temporary relief to global markets.
Senior economist Jennifer Lee at BMO Capital Markets told Reuters on Wednesday 2 that “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.”
For Bitcoin supporters, these policy shifts reinforce the appeal of hard assets as protection against fiscal instability.
Musk’s political pivot intensifies crypto momentum
Elon Musk, CEO of Tesla, announced the formation of his new America Party over the weekend, and went on to confirm on X that it would advocate for the use of Bitcoin.
Fiat is hopeless, so yes
— Elon Musk (@elonmusk) July 7, 2025
Musk has repeatedly criticized uncontrolled government spending, warning that the growing deficit could bankrupt the country.
His endorsement adds to Bitcoin’s legitimacy among mainstream investors and further solidifies its image as an alternative store of value.
Bitwise research backs bold Bitcoin target
Research from crypto asset manager Bitwise indicates that Bitcoin’s recent surge aligns with its earlier prediction that the asset could trade above $200,000 in 2025.
In a July 2 mid-year note to clients, Bitwise Head of Research Ryan Rasmussen reiterated that the firm remains “optimistic” about a very strong second half of the year.
He cited progress in Washington around crypto legislation, growing institutional demand, and increasing interest in stablecoins.
While Bitcoin briefly touched $112,000 in May, Bitwise continues to hold its ambitious $200,000 target, emphasizing that institutional demand is too strong to keep prices flat for long.
Rasmussen noted that flows into U.S. spot Bitcoin ETFs, expanding corporate treasury allocations, and the emergence of a U.S. strategic Bitcoin reserve have all supported upward momentum.
