Why Is This Crypto Bull Run Special?

Introduction

Bitcoin has shattered expectations once again, surging to an all-time high of $116,000 on July 10—just six days after former President Donald Trump signed the $3.3 trillion "Big Beautiful Bill" into law. Since the bill’s passage, Bitcoin has gained 6%, with Ethereum and a host of altcoins rising in tandem.

But this rally isn’t just another crypto cycle. It’s powered by a rare alignment of macro-economic shifts, explosive institutional inflows, and waning trust in traditional financial systems.

Key Takeaways

• Bitcoin hit $116,000, up 6% since the "Big Beautiful Bill" was signed on July 4.

• BlackRock’s spot Bitcoin ETF (IBIT) now manages $76 billion, tripling its AUM in just 200 trading days.

• US debt surged by $410 billion, igniting fears of inflation and prompting investors to seek hard assets.

• The Federal Reserve’s balance sheet continues to shrink, tightening liquidity and steering capital into Bitcoin.

• Altcoins, DeFi tokens, and even meme coins are rallying—crypto is once again leading the risk-on narrative.

Fiscal Shock Sparks Rush into Hard Assets

The "Big Beautiful Bill" is more than just a headline. By lifting the debt ceiling by $5 trillion and permanently extending key tax cuts, the bill triggered an immediate $410 billion jump in U.S. federal debt.

Markets are reacting swiftly. The move is widely seen as inflationary, accelerating a flight from bonds and a rotation into hard assets like Bitcoin. With its fixed supply and decentralized nature, Bitcoin is reclaiming its role as a hedge against fiat debasement.

Institutional conviction is surging. BlackRock’s IBIT ETF—a proxy for mainstream investor appetite—has reached $76 billion AUM, a milestone it achieved 15x faster than the largest gold ETF. The message is clear: institutions now view Bitcoin as a credible, long-term asset class.

Shrinking Fed Balance Sheet Tightens the Squeeze

At the same time, the Federal Reserve continues to drain liquidity from the financial system. In June alone, the Fed reduced its balance sheet by $13 billion, bringing total quantitative tightening to over $2.3 trillion since 2022.

Meanwhile, Treasury holdings have fallen $1.56 trillion, even as the U.S. ramps up borrowing. With fewer buyers in the bond market, capital is moving to assets with stronger long-term narratives—like Bitcoin and Ethereum.

Ethereum is now trading near $3,000, up 14% since the bill’s passage. Solana, Avalanche, and other altcoins are also seeing double-digit gains. Even meme coins and DeFi protocols are rebounding, signaling the return of speculative capital.

Stock Market Boom Reinforces Risk Appetite

The crypto bull run is unfolding alongside a broader risk-on rally in traditional markets. The S&P 500 has soared 30% since its April 2025 low, recently hitting a fresh all-time high.

This matters. When investor sentiment turns bullish in equities, crypto often follows. The market is treating the Big Beautiful Bill as stealth stimulus—a fiscal jolt that weakens the dollar and inflates asset prices. Crypto, especially Bitcoin, thrives in this kind of environment.

Conclusion

This isn’t just another crypto bull run fueled by hype. It's driven by deep structural changes in the financial system.

From the expansion of U.S. debt to the institutional embrace of Bitcoin, we’re witnessing a paradigm shift. Crypto is no longer a fringe asset—it’s becoming a macro hedge, a portfolio staple, and a hedge against both liquidity crunches and government overreach.

As this new cycle accelerates, investors are watching the Federal Reserve’s next move. If rate cuts materialize in the coming months, it could pour even more fuel on the fire.

FAQ

Why did Bitcoin surge after the Big Beautiful Bill?

The bill increased U.S. debt by $410 billion and signaled long-term inflation risks. Investors are rotating into hard assets like Bitcoin as a hedge against currency debasement.

What makes this bull run different from previous ones?

This cycle is driven by macroeconomic policy shifts, historic ETF inflows, and widespread institutional adoption—not just retail speculation or halving hype.

How big is BlackRock’s Bitcoin ETF now?

IBIT has reached $76 billion in assets under management—tripling in just 200 trading days and becoming a major driver of market momentum.

Is Ethereum also benefiting from the rally?

Yes. Ethereum is up 14% since the bill’s signing, and other Layer 1 tokens like Solana and Avalanche are also surging alongside rising investor appetite.

Is this bull run sustainable?

If inflation expectations rise and liquidity stays tight, Bitcoin and crypto may continue to outperform. Future Fed rate cuts could further extend the rally.