There’s new progress on Trump’s fiscal budget bill.
On Tuesday (Washington, D.C. time), Trump visited Capitol Hill, pressuring Republican lawmakers to support the passage of his budget bill.
This bill, also known as the "Big Beautiful Bill," will raise the debt-to-GDP ratio to 125%, an unprecedented level.
It will also lift the debt ceiling.
Once this bill passes Congress, the Treasury will issue more government bonds, leading to a contraction in market liquidity. A similar situation occurred from June to September 2023, when the S&P index fell steadily for four months, and Bitcoin dropped for three months, until Yellen’s issuance of short-term bonds triggered the release of overnight reverse repo funds, which then restarted the upward trend.
Therefore, I personally plan to clear all my token holdings when the bill passes and wait to re-enter the market in the third quarter. I predict that the market might hype up topics like fiscal deficits, the national debt crisis, and stagflation at that time.
