"Us Fiscal expansion, Bitcoin rally sparked"...3.3 Trillion dollar budget bill as variable

There was an analysis that the large-scale fiscal spending by the U.S. government played a key role as a catalyst in Bitcoin's rise. Nikolaj Sondergard, an analyst at the on-chain data company Nansen, said in an interview with The Block, "The U.S.'s expansive fiscal policy is creating a very favorable environment for Bitcoin."

Sondergard particularly focused on the recently passed $3.3 trillion budget bill, known as the ‘Big Beautiful Bill.’ He analyzed, "This bill goes beyond simple fiscal expansion and opens the possibility for additional currency supply in the future," adding, "Thus, Bitcoin's position is being further strengthened as a hedge against the decline in the dollar's value."

The market believes that, while this budget bill may induce economic stimulus in the short term, it could stimulate a weakening dollar trend along with inflation concerns in the medium to long term, and hence digital assets like Bitcoin are once again being highlighted as ‘digital gold.’