Bitcoin’s Boom Tied to US Spending Fears, Not Crypto Hype

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Bitcoin’s Boom Tied to US Spending Fears, Not Crypto Hype

Written by Aaron S.,

Editor-In-Chief

Last Updated: July 14, 2025

Key Takeaways

Bitcoin's surge to $121,000 is being driven by investor concern over rising US debt, not excitement about crypto itself;
Thielen said Bitcoin is now viewed as protection against unchecked government spending;
A $5 trillion debt ceiling hike and potential rate cuts are prompting investors to turn to Bitcoin as a financial safety net.

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Bitcoin’s Boom Tied to US Spending Fears, Not Crypto Hype

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The recent rise in Bitcoin’s BTC $120,369.45 price is being linked to concerns over US government spending, rather than excitement about cryptocurrency itself, according to Markus Thielen, Head of Research at 10x.

On July 14, Bitcoin reached a new high of around $121,000, which Thielen called "a response to something much deeper" than usual market trends.

He stated, "The narrative has completely shifted: no one is talking about blockchain use cases or Bitcoin’s technological promise anymore. Bitcoin has become a macro asset, a hedge against unchecked deficit spending".

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At the center of these worries is the recently passed "One Big Beautiful Bill Act", signed by President Donald Trump in July. The bill raised the debt ceiling by $5 trillion.

While initially presented as a means to reduce deficits, estimates suggest the bill could instead add between $2.3 trillion and $5 trillion to federal deficits within the next decade. This amounts to a potential $7 trillion gap compared to initial expectations, Thielen said.

He added that continued high spending and the likelihood of interest rate cuts make Bitcoin one of the main options for investors seeking to protect themselves from future financial risks. Thielen said:

Alongside gold, Bitcoin is now positioned as the primary defense against a looming fiscal crisis—and that crisis is rapidly intensifying.

Recently, Arkham, a blockchain analytics firm, reported that Satoshi Nakamoto, the anonymous figure behind Bitcoin, has reached a new milestone in personal wealth. What did the company say? Read the full story.