The U.S. Senate has passed President Donald Trump’s massive $3.3 trillion spending bill, nicknamed the “Big Beautiful Bill.” While it still requires approval from the House, the crypto world is already buzzing about what this could mean for Bitcoin, Ethereum, and beyond.
Santiment reported that crypto markets are showing a clear bullish bias following the Senate’s narrow approval of the bill. According to their update, Bitcoin miners could benefit from the bill’s inflationary implications, while Elon Musk has expressed frustration over the legislation. Despite its controversy, the bill is fueling optimism across the crypto sector.
Bitcoin Could Shine Amid Soaring Debt
The bill would significantly raise the U.S. national debt, triggering inflation concerns. Historically, investors have looked to Bitcoin as a hedge against both inflation and a weakening dollar. If inflation picks up or trust in the dollar slips, Bitcoin could see strong demand as a digital safe haven.
Ethereum and Altcoins in the Mix
Market analyst Marius suggests that Ethereum and infrastructure-based altcoins may also benefit, as investors seek higher-risk, high-reward assets. However, speculative tokens and meme coins could underperform, especially in a cautious market environment.
Additionally, the bill’s broader macroeconomic impact plays a significant role. With over $4.5 trillion in tax cuts and $1.2 trillion in entitlement cuts, without any revenue offsets, the bill is expected to increase inflationary pressure in the U.S. economy. This strengthens the appeal of Bitcoin and other cryptocurrencies as a hedge against the debasement of fiat currencies.
Crypto Reaction
Crypto analyst Crypto Dad highlights that the newly passed “Big Beautiful Bill” offers a significant boost to the crypto sector. Notable crypto-friendly provisions include:
- A de minimis exemption for transactions under $300 simplifies everyday crypto usage.
- Tax deferrals and simplified rules for staking and mining rewards make participation more attractive.
Combined with the inflationary pressure from massive tax cuts and spending hikes, Bitcoin’s narrative as an inflation hedge is gaining traction. As regulatory clarity improves and macroeconomic risks rise, crypto markets, especially Bitcoin, appear well-positioned for an upward move.
Institutions May Stay Cautious
While retail interest is likely to grow, institutions may remain cautious. Rising debt and the potential for Federal Reserve tightening could lead big investors to wait for more clarity on interest rates and inflation trends.If the bill passes the House with its crypto-friendly provisions intact, it could spark a broader rally in Bitcoin, Ethereum, and select altcoins. However, the final impact will hinge on the Federal Reserve’s next move and whether inflation pressures lead to another rate hike.
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FAQs
The “Big Beautiful Bill” is President Donald Trump’s massive $3.3 trillion spending bill, recently passed by the U.S. Senate. It’s a comprehensive package encompassing tax cuts (making 2017 provisions permanent), entitlement cuts, and other provisions, and is now awaiting approval from the House.
The bill is expected to significantly increase the U.S. national debt, leading to inflation concerns. Bitcoin is often seen as a hedge against inflation and a weakening dollar, so increased inflationary pressure could boost its demand as a digital safe haven. Select altcoins may also benefit as investors seek high-reward assets.
The final impact of the “Big Beautiful Bill” on crypto markets will heavily depend on the Federal Reserve’s next moves. If inflation pressures intensify due to the bill’s spending and tax cuts, the Federal Reserve might consider another interest rate hike, which could influence crypto market dynamics and institutional investment.
