Bitcoin’s Potential Upswing Amid Trump’s ‘Big Beautiful Bill’ Passage
On July 3, the US Congress passed the One Big Beautiful Bill Act, a budget proposal by President Donald Trump. While it lacks direct provisions for the cryptocurrency industry, analysts suggest Bitcoin could benefit indirectly from the bill’s economic impact.
Understanding the ‘Big Beautiful Bill’
The legislation, passed along partisan lines, raises the national debt ceiling by $5 trillion. This move drew criticism from Democrats and some Trump allies, including Tesla CEO Elon Musk. Notably absent were proposed amendments to cryptocurrency tax regulations.
Key Bill Provisions
- $5 trillion increase to US borrowing limit
- No cryptocurrency tax amendments included
- Significant tax cuts for high earners
Market Outlook for Bitcoin
Financial experts like Jessica Riedl of the Manhattan Institute and Nigel Green, CEO of deVere Group, note the bill’s potential to boost Bitcoin’s appeal as an inflation hedge. “Increased government debt often leads to monetary expansion, which historically benefits Bitcoin,” explained crypto analyst Ranjay Singh.
Economic Consequences
The bill’s combination of tax reductions and spending increases may fuel inflation. Its trade tariff provisions could also reshape global economic relationships, according to Green.
Upcoming Crypto Legislation
Washington lawmakers have designated a ‘Crypto Week’ to consider three key bills: the CLARITY Act for industry regulation, the Anti-CBDC Surveillance State Act, and the GENIUS Act governing stablecoins.
Conclusion
While the ‘Big Beautiful Bill’ didn’t address cryptocurrency taxation, its macroeconomic effects may strengthen Bitcoin’s position. The forthcoming ‘Crypto Week’ demonstrates growing political attention to digital asset regulation, marking a potential turning point for the industry.
