Bitcoin Climbs to $116,000 as Crypto Kicks Off a New Bull Run
On July 10, Bitcoin rocketed to a record $116,000, just six days after Donald Trump signed the Big Beautiful Bill into law. Since that enactment, the leading cryptocurrency has rallied 6%, with Ethereum and a host of altcoins closely in tow. This upswing is unfolding amid broad macro shifts—ballooning U.S. debt, constrained bond markets, and unprecedented ETF inflows.
Key Takeaways:
Hide- Bitcoin hit a record $116,000 on July 10, six days after the Big Beautiful Bill became law.
- The $3.3 trillion fiscal package added$410 billion to U.S. debt, driving rotation from bonds into scarce assets.
- BlackRock’s spot Bitcoin ETF AUM tripled to $76 billion in 200 trading days, outpacing gold ETF growth by years.
- The Fed’s $13 billion balance-sheet reduction in June and $2.3 trillion cuts over three years have tightened liquidity.
- Ethereum and major altcoins rallied 14%+; meme coins and DeFi tokens are resurging alongside institutional inflows.
- The S&P 500’s 30% rebound from April lows to new highs signals broad risk-on sentiment benefiting crypto.
- Bitcoin’s latest peak is driven by structural macro shifts; all eyes now turn to Fed rate moves and policy outlook.
Fiscal Surge Spurs Shift into Hard Assets
The $3.3 trillion Big Beautiful Bill, enacted July 4, immediately added $410 billion to U.S. debt. By raising the debt ceiling by $5 trillion and cementing key tax cuts, the legislation is widely viewed as inflationary.
In response, investors are fleeing bonds and rotating into finite stores of value like Bitcoin. Make it hit another all-time high with 116K, after not more than 24 hours hitting the previous ATH at 112K.
The sheer magnitude and rapid rollout of the bill have stoked worries over fiscal prudence. With its immutable supply cap, Bitcoin is again prized as protection against currency debasement.
BlackRock’s spot Bitcoin ETF (IBIT) now commands $76 billion in assets—a threefold jump in just 200 trading days. For context, the largest gold ETF took over 15 years to achieve comparable growth.
Today, institutional inflows are a dominant force in Bitcoin’s price discovery, embedding it ever more deeply in mainstream portfolios.
Fed Balance Sheet Cuts Squeeze Liquidity
June saw the Federal Reserve trim its balance sheet by $13 billion, reducing holdings to $6.66 trillion—the smallest since April 2020.
Over the past three years, the Fed has shed more than $2.3 trillion in assets, while Treasury inventories have fallen by $1.56 trillion.
Fewer bond buyers alongside swelling issuance are driving capital toward alternative value stores, with Bitcoin atop the list.
Ethereum has climbed to roughly $3,000—up 14% since the bill’s passage—and other altcoins like Solana and Avalanche are also on the move.
Both retail and institutional pools are flowing back in, and speculative plays from meme coins to DeFi tokens have rekindled, signaling crypto’s return to the risk-on vanguard.
S&P 500 at a Record: Risk-On Across Markets
Since its April 2025 trough, the S&P 500 has surged 30%, hitting fresh all-time highs this week.
Such equity strength underscores investor appetite for high-growth, high-risk assets—and by extension, fuels Bitcoin’s ascent to 116K.
Market participants interpret the Big Beautiful Bill as a form of indirect stimulus, and crypto is responding in kind.
Final Take
Bitcoin’s new peak reflects fundamental pressures, not mere hype: swelling deficits have unsettled confidence in U.S. debt markets. Against a backdrop of inflationary concerns and growing institutional access, Bitcoin is cementing its role as the macro hedge du jour. As this bull market unfolds, eyes will pivot to the Federal Reserve’s rate decisions and broader monetary policy.
