Bitcoin Consolidates After Record High as U.S. Fiscal Concerns Boost Crypto Appeal

Bitcoin Consolidates After Record High as U.S. Fiscal Concerns Boost Crypto Appeal

Bitcoin is stabilizing after reaching a new all-time high on Thursday, as concerns over the U.S. government's rising debt drive investors toward alternative assets. The cryptocurrency briefly touched $111,965 before pulling back to $110,514 in early Friday trading, marking a 0.5% decline.

The rally followed the House of Representatives' passage of President Donald Trump’s expansive tax and spending bill, which has sparked renewed fears over fiscal sustainability. These concerns intensified after Moody’s recently downgraded the U.S. credit rating, prompting investors to diversify away from the dollar.

Adding to the momentum, Trump hosted a private event for investors involved in his meme coin on Thursday evening. According to The Wall Street Journal, he reiterated his commitment to establishing the United States as the global leader in cryptocurrency innovation.

With the combination of fiscal instability and political support for digital assets, Bitcoin continues to benefit from its status as a non-sovereign store of value.