Bitcoin Nears $116,000 Amid Institutional Inflows and Fiscal Concerns Following Big Beautiful Bill

Key Points

1. The $3.3 trillion Big Beautiful Bill, passed on July 4, raised the US debt ceiling by $5 trillion and extended tax cuts, injecting $410 billion in new debt and driving Bitcoin's 6% rally.

2. The Federal Reserve reduced its balance sheet by $13 billion in June, bringing it to $6.66 trillion, the lowest since April 2020, which tightened market liquidity and boosted Bitcoin's appeal.

3. Bitcoin ETFs saw significant inflows, with Bitcoin emerging as a primary beneficiary of reduced liquidity in traditional fixed-income markets.

4. The S&P 500's 30% rally since April 2025 reinforced risk-on sentiment, benefiting cryptocurrencies like Bitcoin, Ethereum, Solana, and Avalanche.

5. Ethereum traded near $3,000, up 14% since the bill's passage, while other tokens like Solana and Avalanche also saw notable gains.