The U.S. Senate has just passed a $3.3 trillion spending bill, marking an important step that could have a significant impact on Bitcoin, Ethereum, and the entire cryptocurrency market.
MAIN CONTENT
The bill increases national debt and stimulates inflation, facilitating Bitcoin as an effective inflation hedge.
Ethereum and infrastructure altcoins are expected to benefit as investors seek higher profit opportunities.
Cryptocurrency-friendly policies in the bill help simplify transactions and encourage mining and staking.
Can Bitcoin become a valuable asset as national debt skyrockets?
Financial experts state that Bitcoin is often regarded as "digital gold" when inflation rises and the USD depreciates. The massive spending bill pushing U.S. national debt up will exert inflationary pressure, boosting demand for Bitcoin as a store of value.
Data from Santiment shows that the cryptocurrency market sentiment is leaning towards a bullish trend after the Senate approved the bill. Bitcoin miners are expected to benefit from rising inflation, and this signal reinforces Bitcoin's role in asset protection.
Bitcoin is seen as insurance against the depreciation of fiat currency in the context of loose fiscal policy.
Michael Saylor, Co-founder of MicroStrategy, 2024
How are Ethereum and altcoins affected by the bill?
Market analyst Marius stated that Ethereum and technology-related infrastructure altcoins are likely to benefit as investors shift towards assets with greater profit potential. Conversely, speculative tokens or meme coins may underperform due to increased cautious sentiment.
The bill also includes over $4.5 trillion in tax cuts and $1.2 trillion in subsidy reductions without offsetting income, which forecasts continued inflationary pressure. This situation is favorable for Bitcoin and cryptocurrency in general to grow as a medium against inflation.
Reactions from the cryptocurrency community
Crypto Dad noted, "The Big Beautiful Bill" provides substantial practical support for the cryptocurrency community. Highlights include:
Tax exemption for small transactions under $300, making it easier for users to integrate cryptocurrency into daily payments.
Simplified regulations and tax deferral for staking and mining rewards, creating an advantage to attract participants.
These policies, combined with inflationary pressure arising from high public spending, have reinforced Bitcoin's role as an effective inflation hedge.
Not only clarifying the legal framework for cryptocurrency, but the bill also triggers a bullish trend thanks to provisions supporting mining and direct trading.
Anna Lee, Cryptocurrency Analyst, 2024
How will investment organizations respond?
While the personal market may be bustling, institutional investors are likely to remain cautious due to concerns about rising national debt and the possibility of the Federal Reserve raising interest rates. Additionally, the effectiveness of the bill will depend on the final decision of the House and subsequent economic fluctuations.
An increasing number of analysts expect that if the cryptocurrency-friendly scope is maintained as the bill goes through the House, it could trigger a new bullish wave for Bitcoin, Ethereum, and select altcoins. However, market stability will be directed by the Fed and inflation developments.
Frequently asked questions
How does the $3.3 trillion spending bill affect Bitcoin?
The bill increases national debt and inflationary pressure, creating a favorable environment for Bitcoin to become a preferred inflation hedge.
What benefits do Ethereum and altcoins get from this bill?
Many infrastructure altcoins benefit as investors seek high-risk assets, while speculative tokens may lose their appeal.
Which policies in the bill support cryptocurrency?
The bill stipulates tax exemption for transactions under $300 and simplifies taxes for staking and mining, facilitating development.
Are investment organizations actively participating?
What factors determine the bullish trend of the cryptocurrency market?
The impact of the bill combined with the Fed's interest rate decisions and macroeconomic developments is significant.
Source: https://tintucbitcoin.com/trump-ky-dao-luat-big-beautiful/
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