Bitcoin has reached a record high of $121,000, primarily seen as a hedge against a looming $7 trillion fiscal deficit in the US. Analyst Markus Thielen noted that the asset has transitioned from being viewed as a tech innovation to a macroeconomic asset, similar to gold. This shift in narrative reflects a broader concern around US fiscal irresponsibility, especially following major policy changes such as the passage of President Trump's 'One Big Beautiful Bill Act,' which could exacerbate deficit issues. Thielen indicated that this rally is a response to an unraveling US fiscal landscape rather than mere market hype. Other catalysts impacting Bitcoin's price include upcoming legislative reviews in Washington D.C. regarding crypto market regulation and central bank monetary policies, including anticipated interest rate cuts. Analysts believe that Bitcoin's integration into institutional portfolios is deepening, positioning it as a key asset during times of economic uncertainty, potentially leading it to reach between $130,000 and $150,000 by year's end.

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