Bitcoin is now sitting above $117,000 for the first time in its history, rising more than 60% since its lowest point in April. The exact figure? $117,080. Ether touched $3,000, before rebounding slightly to $2,800 at press time. Meanwhile, XRP surged by 5% to $2.6.
This rally is happening while the U.S. Dollar saw its steepest six-month fall since 1973, dropping nearly 11% amid a simultaneous rally in tech stocks, led by Nvidia, which just became the first company ever to hit $4 trillion. The timing of Bitcoin’s price actions lines up exactly with new warnings about U.S. debt, fiscal chaos, and an economy that’s clearly slipping.
In early April 2025, Bitcoin had been sinking as markets braced for another global trade war. On April 9th, the White House hit pause on tariffs, giving a 90-day delay. That was the same day Bitcoin bottomed. Then on April 20th, without a single headline moving markets, Bitcoin suddenly shot up, and didn’t stop. Something deeper was driving the rebound.
The U.S. government just raised the debt ceiling by $5 trillion, bringing it to $41.1 trillion. Right now, the national debt is hovering around $37 trillion. If things stay on track, the ceiling will be maxed out again in under three years. That’s the real issue spooking the market.
Elon exits DOGE as Bitcoin spikes
On April 22nd, Elon Musk announced he was stepping down from the Department of Government Efficiency, also called DOGE. That announcement came just two days after the rally began, and the timing matched too perfectly to ignore. The market read it as a sign that the fiscal picture in Washington was even worse than expected.
Elon’s exit was quickly followed by an open fight between him and President Donald Trump, who returned to the White House after the 2024 election. But that clash wasn’t just personal. It was political, and it came as Trump pushed Congress to pass what he called the “Big Beautiful Bill” (OBBB). The bill is projected to add $5.5 trillion to the national debt if made permanent. As talk of the bill intensified, Bitcoin climbed even faster.
The full timeline shows how closely Bitcoin tracked the bill’s progress. On June 22nd, Bitcoin briefly dipped into its $100,000 support. But by July 1st, as analysts increased the odds of the OBBB passing, the price started to rise again. On July 3rd, the House approved the bill. And by July 4th, Trump had signed it into law. That same week, Bitcoin passed $117,000, while the U.S. Dollar Index dropped to levels not seen since March 2022.
That’s not the only sign of trouble. In the first half of 2025, the dollar dropped 10.8%, its worst performance to start a year since 1973. Even during the inflation panic of 1986, the dollar didn’t fall this fast. And the drop is continuing despite Trump’s ongoing tariff campaign. The administration has been sending out “tariff letters” and escalating pressure on foreign trade partners. Normally, that kind of aggression should boost the dollar. But that’s not what’s happening.
Elon launched his new “America Party” a few days ago. When asked on X if the party would support Bitcoin, Elon didn’t dodge. “Fiat is hopeless, so yes,” he said.
At the same time, the Federal Reserve has taken a hard line. The latest FOMC minutes show that several members see no rate cuts coming in 2025.
The official stance has been “wait and see” for months, meaning interest rates will likely stay higher for longer. That, too, should support the dollar. But the opposite is playing out. The greenback keeps sinking, and that has everything to do with the debt crisis.
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