Crypto Market Recovers as Senate Passes Spending Bill,New Vietnam Trade Deal Announced

The cryptocurrency market experienced a resurgence on Wednesday, shaking off recent volatility following the Senate’s approval of President Donald Trump’s “One Big Beautiful Bill” (OBBA) and the unveiling of a fresh trade agreement with Vietnam. This positive movement signals renewed investor confidence in digital assets amid evolving economic policies.

Key Cryptocurrency Price Movements

Bitcoin (BTC) demonstrated a positive trend, increasing by 3.2% over the past 24 hours to reach a trading price of approximately $109,400. Ethereum (ETH) also saw significant gains, climbing nearly 6% to $2,560. Other altcoins, including Solana (SOL), which rose by 3.6% to $153, and XRP, which increased by 3.2% to $2.26, contributed to the overall market recovery.

Did You Know? The total crypto market capitalization increased by 1.3% on Wednesday, reaching $3.5 trillion.

Impact of Senate Bill and trade Agreement

The Senate’s passage of OBBA, a government spending bill projected to add $3 trillion to the federal deficit over the next decade, played a significant role in the market’s response. The bill passed with a 50-50 vote, with Vice President JD Vance casting the tie-breaking vote. Simultaneously, President Trump announced a new trade agreement with Vietnam, which includes a 20% tariff on Vietnamese goods and a 40% “transshipping” tariff.This agreement arrives just before the expiration of his “reciprocal” tariff program.

President Trump highlighted the trade deal on Truth Social, stating, “It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the highly Respected General Secretary of the Communist Party of Vietnam” [[1]]. The White House has released details of the agreement.

Expert Analysis and Market Sentiment

Mike Cahill, co-founder and CEO of Douro Labs, suggests that Bitcoin’s surge past $109,000 indicates a broader shift in institutional sentiment, with significant macro catalysts “drawing fresh capital back into crypto as a portfolio diversifier.” He emphasizes the importance of understanding the bigger picture beyond price movements, noting the return of “real money seeking macro-hedge exposure unaffected by traditional trading hours.”

Kyle chassé, CEO of MV Global & Founder of PAID, believes that “Washington just wrote itself a record-breaking $5 trillion IOU and every new trillion is free advertising for Bitcoin.” He argues that the “Big Beautiful Bill” will unleash a fresh wave of spending, swelling the U.S. and global M2 money supply, a metric that has historically tracked Bitcoin’s price closely. Chassé forecasts that Bitcoin will break through $225,000 by the end of the year.

Pro Tip: Keep an eye on macroeconomic factors and government policies, as they can significantly influence the cryptocurrency market.

Bitcoin ETF Flows

U.S. spot Bitcoin exchange-traded funds (ETFs) experienced $342 million in outflows on July 1, ending a 15-day streak of inflows. Conversely, spot ETH ETFs saw nearly $41 million in inflows, according to SoSoValue data. These shifts in ETF flows reflect the dynamic nature of investor sentiment and asset allocation within the cryptocurrency space.

The performance of Bitcoin ETFs can be tracked on websites like Yahoo Finance [[2]].

Cryptocurrency Market Performance

Here’s a summary of the cryptocurrency market performance:

Did You Know? Leveraged liquidations in the crypto market totaled $343 million, with BTC leading the wipeouts at nearly $121 million.

Factors Influencing Cryptocurrency Prices

Cryptocurrency prices are influenced by a complex interplay of factors, including:

• Macroeconomic events: Government spending bills, trade agreements, and inflation rates can significantly impact investor sentiment and capital flows.
• Institutional adoption: Increased participation from institutional investors can drive up demand and prices.
• Regulatory developments: Clear and favorable regulations can foster greater adoption and stability in the market.
• Technological advancements: Innovations in blockchain technology and the progress of new applications can attract investors and users.

What are your thoughts on the long-term impact of government spending on the crypto market? How will the new trade agreement affect the adoption of cryptocurrencies in Vietnam?

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.

Share your thoughts in the comments below! Subscribe to World today News for the latest updates on the cryptocurrency market and global economic trends.