Donald Trump and Elon Musk may not be seeing eye to eye on a lot of things these days, but they both contributed to pushing Bitcoin’s price to its best weekly close ever at $109,200 — $140 higher than the last weekly record set in May.

But the rally ain’t stopping, according to analysts who expect Bitcoin’s price to skyrocket as high as $136,000 in July.

The bullishness comes as several factors fuel optimism among traders who have spent the past week piling into bets that only pay out if Bitcoin breaks the $112,000 barrier.

The drivers of the optimism include easing geopolitical tension in the Middle East, institutional crypto adoption, and the expectations that a wave of liquidity will hit markets.

The Trump effect

On Sunday, US President Trump said he’ll delay the next round of tariffs until August 1, offering markets a brief reprieve from an immediate trade war escalation.

Confusion still lingers over the final terms, but the delay, combined with Trump’s sweeping new tax and spending package, has sent risk assets like Bitcoin higher.

On July 4, Trump signed his so-called “One Big Beautiful Bill” into law, raising the US debt ceiling by $5 trillion and making his 2017 tax cuts permanent.

Analysts warn the plan could add as much as $7 trillion to the national debt over the next decade.

For Bitcoin advocates, the spending spree and rising debt load only reinforce the case for hard assets.

“The currency debasement games just stepped up another level,” analysts David Brickell and Chris Mills wrote in their weekly Connecting The Dots newsletter.

The dollar’s worst first-half performance in over 50 years suggests they aren’t exaggerating, and analysts don’t expect conditions to improve anytime soon.

“The recent budget, the inflationary impact of tariffs, and Trump’s pointed comments toward the Fed don’t bode well for the overall US outlook, or the dollar,” Jennifer Lee, senior economist at BMO Capital Markets, told Reuters.

Musk breaks away

The growing fiscal anxiety has also sharpened political divides.

Trump’s former “First Buddy” Elon Musk has slammed the president over the ballooning US deficit. Now Musk appears to be courting support from Trump’s crypto-friendly base.

Over the weekend, the Tesla chief confirmed that his newly announced centrist America Party would embrace Bitcoin, replying to a follower on X: “Fiat is hopeless, so yes.”

Musk, whose public stance on crypto has shifted back and forth over the years, has warned that the US deficit trajectory will “bankrupt the country.”

Predictions galore

The fallout between the two MAGA men adds another dimension to a market already buzzing with bullish anticipation for a Bitcoin breakout in July.

Bitwise said in a July 2 research note that Bitcoin’s price tends to pop up to 30% in the 50 days after the market suffers geopolitical shocks that trigger global pullbacks.

That means the price could hit as high as $136,000 following the de-escalation of the conflict between Iran and Israel.

Adding to the bullishness, Bitwise’s European Head of Research André Dragosch noted that central banks around the globe are continuing to cut interest rates, which is pumping liquidity into the global economy.

Lower rates usually incentivise investors to bet on risk-on assets like cryptocurrencies.

Crypto market movers

• Bitcoin has gained 0.8% in value over the past 24 hours and is trading at $108,915.
• Ethereum is up 2.6% in the same period to $2,580.

What we’re reading

Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.