Bitcoin hit new highs as US debt rose to $ 36.6 trillion. Macroeconomic data is detailed the BTC rally?
Key Takeaways:
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The explosion in the US and stress on the housing market can stigmament a sharp BTC correction to $ 95,000.
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The price of Bitcoin remains closely tied to MacRO trends, including Fed policy and institutional flow.
The United States national debt increased $ 367 billion on Monday, reaching a full time of $ 36.6 trillion. US president Donald Trump followed the approved “a Big Beautiful Bill,” which raised the ceiling to the $ 5 trillion on Friday. Can it be a trigger for a bitcoin (Btc) Crash for $ 95,000?
Analysts, including Kurt S. Altrichter, CRPS and founder of Ivory Hill Wealth, raised red flags about the US housing market. A strong scale that is commonly spike in previous economic collapse has now reached the stressful levels, according to Altrichter.
The inventory of new family-family homes is approaching a 10-month supply worth. According to Altrichter, this “this only happened during or right before the backwards.” He insists that the weakness in housing comes from high interest rates but, more importantly, from what he calls “evaporation demand.”
If this historic pattern-which regulates oversupply housing housing to the greater economic collapse-holds true, the impact can be weighed in risky assets, including Bitcoin. Although the long-term impact proves to be positive for crypto, the immediate reaction from investors tends to be a risk of prevention, favoring cash and short-term bonds.
Jack Malers, co-founder and CEO of Strike, mentioned in X that the only viable choice for US treasury is Expand the base of the money—The action similar to money printing. Malers argue that the government is not likely default to its debtDebasement means the final resort. This, he suggests, creates an ideal atmosphere for a Bitcoin rally.
Bitcoin’s fate depends on the actions of the US Federal Reserve
There is also a counter-story: some market participants believe that Bitcoin’s breakout above $ 112,100 on Wednesday is unrelated to fiscal issues or fear of contraction. Instead, they introduced the broader stock market rallies to the expectations of policy changes in the Federal Reserve.
The speculation also grows around the potential push of President Trump to Replace the fed chair Jerome Powell. If successful, the transition can lead to more Dovish financial policy. Trump repeatedly urged the fed to lower interest rates. According to the FOX Business, he is currently investing candidates to succeed in Powell, whose term ends in May 2026.
Notwithstanding strong net inflows With funds exchanged by the Bitcoin (ETF) exchange and increasing institutional demand, the BTC remains closely tied to the broader equity market.
The relationship between Bitcoin and the S&P 500 stands at 68%, which means that both classes have shown similar price trends. The ongoing US import tariffs are another risk factor, which potentially hurt corporate revenues, especially in the Tech sector, which is highly dependent on global trade.
Nvidia (NVDA), which became the world’s most important company with a $ 4 trillion market cap on Wednesday, could be exposed especially. It is difficult to guess if increasing trade tensions will motivate a steep decline in tech stocks. While increasing the debt ceiling often enhances the risk-in sentiment, the threat of a contraction can trigger a Bitcoin correction to $ 95,000.
Ultimately, a new all-time high for Bitcoin in 2025 remains possible, as mentioned by Strike’s Jack Malers. But for now, entrepreneurs appear to be afraid if the AI -driven tech sector will ruin the trade conflict.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
