Bitcoin has crossed above $117,000 for the first time in its history, seeing a rise of about 60% since its lowest level in April. The digital asset is now trading at exactly $117,080. Ethereum also fed off its rise, with the asset touching $3,000, before rebounding slightly to $2,800 at press time. Meanwhile, XRP surged by 5% to $2.6.
This rally is coming in the middle of the U.S. Dollar’s 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 is in line with new warnings about U.S. debt, fiscal chaos, and an economy that’s slipping.
In April, Bitcoin experienced a decline as markets braced for another global trade war. On April 9th, the White House paused tariffs, giving a 90-day delay. That was the same day Bitcoin hit rock bottom. On April 20th, Bitcoin suddenly shot up and refused to stop, showing that the rebound was driven by something deeper. The US government also just raised the debt ceiling by $5 trillion, bringing it to $41.1 trillion. Right now, the national debt is hovering around $37 trillion.
Bitcoin spikes after Elon Musk’s DOGE exit
On April 22, Elon Musk announced his decision to step down from the Department of Government Efficiency (DOGE). That announcement came 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.
After Elon Musk’s exit, an open fight between him and President Donald Trump, who returned to the White House after the 2024 election, started. 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 timeline showed how closely Bitcoin tracked the bill’s progress. On June 22, 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 it was signed into law by Trump by July 4th. That same week, Bitcoin passed $117,000, while the U.S. Dollar Index dropped to levels not seen since March 2022.
That is 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, 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 it is yet to happen.
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 “wait and see” approach has been on for months, meaning interest rates will likely stay higher for longer. It is expected to support the dollar, but the opposite is playing out.
