Bitcoin Hits $116,000 as Crypto Enters a New Bull Market — What’s Next?
Bitcoin hits $116,000 just days after Trump signs $3.3 trillion bill. ETF inflows, rising debt, and macro shifts fuel a powerful new crypto bull cycle.
Bitcoin surged to an all-time high of $116,000 on July 10, just six days after Donald Trump signed the Big Beautiful Bill into law. The flagship cryptocurrency has gained 6% since the bill’s signing, with Ethereum and other altcoins following close behind.
The rally comes amid a wave of macroeconomic shifts, rising US debt, tightening bond markets, and historic ETF inflows.
Fiscal Surge Triggers Flight to Hard Assets
Trump’s $3.3 trillion Big Beautiful Bill, signed on July 4, triggered an immediate $410 billion rise in US debt. The bill lifts the debt ceiling by $5 trillion and permanently extends key tax cuts.
Markets see this as inflationary. Investors are rotating out of bonds and into scarce assets like Bitcoin. The bill’s size and speed of implementation have amplified fears over fiscal discipline.
Bitcoin, with its fixed supply, is emerging again as a hedge against fiat debasement.
Bitcoin price Chart. Source:
BeInCrypto
BlackRock’s spot Bitcoin ETF (IBIT) has reached $76 billion in assets under management. That’s triple what it held just 200 trading days ago.
By comparison, it took the largest gold ETF over 15 years to reach the same milestone. Institutional flows are now a powerful driver of price action, pushing Bitcoin deeper into mainstream portfolios.
US Spot Bitcoin ETFs Monthly Inflows in 2025. Source:
SoSoValue
Fed Balance Sheet Shrinkage Tightens Liquidity
In June, the Federal Reserve reduced its balance sheet by $13 billion, bringing it to $6.66 trillion—the lowest since April 2020. The Fed has now cut over $2.3 trillion in assets over the last three years.
Meanwhile, Treasury holdings are down $1.56 trillion in that same period. With fewer buyers in the bond market and more debt being issued, investors are moving into alternative stores of value.
Bitcoin has become the top candidate.
BREAKING: The Federal Reserve’s balance sheet declined by -$13 billion in June, to $6.66 trillion, the lowest since April 2020.Over the last 3 years, the Fed has reduced its asset holdings by -$2.31 trillion, or -26%.During this period, the value of Treasury holdings has… pic.twitter.com/OGAVR5wjUd
— The Kobeissi Letter (@KobeissiLetter) July 10, 2025
Also, Ethereum is trading near $3,000, up 14% since the Big Beautiful Bill became law. Solana, Avalanche, and other altcoins are also rallying.
Retail and institutional capital are returning. Meme coins and DeFi tokens are gaining traction as speculative sentiment returns. Crypto is once again leading the risk-on cycle.
SP 500 All-Time High: Risk-On Across the Board
The SP 500 has surged 30% since its April 2025 low, hitting a new all-time high this week. This signals strong investor confidence in high-growth, high-risk assets.
Bitcoin benefits directly from this environment. As equities rally, crypto tends to follow. The market sees the Big Beautiful Bill as indirect stimulus—and it’s responding accordingly.
SP 500 Price Chart Over the Past Month. Source:
Google Finance
Bottom Line
Bitcoin’s latest all-time high is a response to structural changes—not hype. The Big Beautiful Bill expanded the deficit and shook confidence in US debt markets.
With inflation fears rising and institutional access growing, Bitcoin is becoming the macro hedge of choice. As crypto enters a new bull market, all eyes now turn to the Federal Reserve and rate cut decisions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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