Bitcoin’s price action has been fueled by stimulus-driven rallies in the past, and now with US President Donald Trump preparing to sign a massive spending package, many are eyeing a repeat of the 2020 stimulus rally. In 2020, Bitcoin surged nearly 40% after similar legislation was passed, and some believe it could happen again.
The catalyst this time is a sweeping bill that would push US borrowing to levels never seen before, with experts warning that the national debt could reach $40 trillion. However, instead of spooking traditional markets, Bitcoin tends to thrive in excess liquidity environments, making it an attractive option for investors seeking deflationary assets.
Global liquidity data has also been trending upwards, with the M2 money supply reaching a new all-time high of $55.4 trillion. Historically, Bitcoin has followed this trend, often rallying in tandem with rising global liquidity. This could align with recent bullish sentiment from traders like Rekt Capital, who believe we’re entering the final leg of the Bitcoin bull cycle.
However, there’s an unpredictable variable in the mix – old Bitcoin wallets coming under increased scrutiny due to advances in quantum computing or economic pressure. If a major rally materializes, it could coincide with long-dormant addresses being reactivated, potentially pushing prices to $150,000 or more.
For now, Bitcoin trades at around $109,000, and a 38% gain would push it to this level. Analysts believe that if the stimulus is passed and liquidity floods into the system, Bitcoin may respond with another parabolic move. As of writing, Bitcoin sits at $108,979.45, and traders are eagerly watching developments in the coming days.
Source: https://www.tipranks.com/news/bitcoin-aims-for-150k-as-trumps-big-beautiful-bill-opens-the-fiscal-floodgates