Bitcoin (BTC) Price Analysis: The $7 trillion deficit fluctuation in the United States makes "Crypto Assets Week" a key catalyst.

Bitcoin (BTC) has repeatedly reached new highs, hitting a peak of 123,236 USD during the Asian session today (14). Analysts say that Bitcoin is positioned as a major defense against the imminent U.S. financial crisis, second only to gold, and could be one of the main drivers behind its current surge.

Markus Thielen, the head of 10x Research, stated in a report he shared: "This surge is not driven by speculation, but by deeper underlying factors."

He continued to say that Bitcoin has transformed from a technology story into a macro asset, specifically a tool for hedging against irresponsible actions by the U.S. government.

"The narrative has completely changed; no one is talking about blockchain use cases or the technological prospects of Bitcoin anymore," Thielen added. "Bitcoin has become a macro asset, a tool for hedging against uncontrolled deficit spending."

The fluctuation of the 7 trillion dollar deficit in the United States

U.S. President Trump's "Beautiful Law" (OBBBA) was passed in July, raising the debt ceiling by $5 trillion, the largest single increase in U.S. history.

The bill promises to reduce the deficit by $2 trillion, but in the next decade, the federal deficit could increase by $2.3 trillion to $5 trillion. Tylen stated that this could result in a deficit level that differs by $7 trillion from the initial expectations.

He stated that, due to the absence of signs of a slowdown in deficit spending, monetary policy has become more accommodative through anticipated interest rate cuts, with Bitcoin positioned as the "ultimate beneficiary" of this macro environment.

This is not just another cryptocurrency rebound; "this is a direct reaction to the U.S. financial situation collapsing faster than expected," he said.

"Alongside gold, Bitcoin is now seen as a primary defense against the looming financial crisis – and this crisis is rapidly escalating."

Bitcoin price catalyst

Analysts have identified other market catalysts through a series of upcoming events. Washington, D.C. will host a "Cryptocurrency Week" event to review key legislation. Legislators are expected to debate and possibly discuss three high-profile bills: the "CLARITY Act" for regulatory oversight of the cryptocurrency market; the "GENIUS Act" for creating a stablecoin framework; and the anti-CBDC surveillance national bill.

Trump's digital asset working group will also release a cryptocurrency policy report on July 22, which may include a strategic Bitcoin reserve proposal.

The Federal Reserve will hold a meeting on July 30, where a rate cut is expected. However, the Chicago Mercantile Exchange (CME) futures market still predicts a 93% chance that interest rates will remain unchanged.

(Source: 10x Research)

Analysts' Reactions to Bitcoin's Historic New High

Eugene Cheung, Chief Business Officer of the crypto platform OSL, stated: "As the United States prepares to discuss key legislation on crypto during the Crypto Week, despite geopolitical tensions and tariff issues causing stock market volatility, cryptocurrencies remain resilient."

He predicts that by the end of the year, the asset could reach between 130,000 to 150,000 dollars.

Rachael Lucas, an analyst at the Australian cryptocurrency exchange BTC Markets, stated: "Bitcoin breaking through $120,000 is not just a milestone; it also marks how deep digital assets have penetrated institutional portfolios."

At the same time, LVRG research director Nick Ruck stated: "We expect that as traders diversify their portfolios and take on more risk, altcoins will continue to follow the trend of Bitcoin."