The US Senate has slightly passed that former President Donald Trump wiped out a $3.3 trillion fiscal package. As the law heads to the House for final approval, the crypto market is closely watching its potential impact.
Bitcoin and Ethereum prices remained stable on Tuesday despite the wider market dip. However, the Beincrypto analysis predicts that if the bill is enacted, investors’ sentiment and capital allocation could be reconstructed.
Bitcoin could be obtained as a hedge of finances
The most pressing impact lies in Bitcoin. The bill had expected to raise national debt by more than $3 trillion. Therefore, market participants are already exerting long-term inflationary pressures.
Bitcoin, often considered a hedge against the Fiat currency debate, could benefit from new demand.
Most importantly, the weaker dollar and the decline in confidence in US fiscal management are likely to strengthen Bitcoin’s “digital gold” narrative.
Altcoins could see uneven advantages
Ethereum and other large Altcoins also have short-term support. Risk rotation from bonds and risk rotation to alternative assets often lifts crypto widely.
However, not all tokens are evenly arranged. Infrastructure and utility tokens endure profiting from increased activity and capital flows.
On the other hand, meme coins and speculative assets may remain volatile or underperforming.
Clearer tax rules – such as exemptions from small crypto transactions – could encourage wider adoption, especially among retail users.
Retail and institutional sentiment will likely diverge
Retail investors can respond proactively to personal tax reductions and simplified crypto reporting.
If the final bill includes crypto-friendly tax reforms (including De Minimis exemptions and income transparency), it could reduce friction for small traders and Defi users.
Institutional sentiment may be more cautious. Rapid debt accumulation and potentially inflation outlook will encourage institutional investors to adopt a waiting-and-see approach, especially if the Federal Reserve strengthens its policies accordingly.
Short-term outlook: The crypto market could be high
If the House passes the bill with encrypted provisions, Bitcoin and Ethereum could come together more. Capital turnover from the Treasury, driven by rising US debt and fiscal uncertainty, could raise prices.
Total crypto market capitalization can be tested in the short term range of $3.5 to $3.7 trillion.
However, the scope of the rally depends on broader macroeconomic conditions, including interest rate policies, regulatory enforcement and global liquidity trends.
Medium-term outlook: Fed policy becomes important
The long-term impact on cryptos depends on how the Federal Reserve responds to the inflationary effects of the bill.
If the Fed fights against fiscal expansion by raising interest rates, this could bolster the dollar and pressure crypto market. Conversely, if the Fed remains a lodging facility, digital assets can continue to benefit.
The survival of the bill’s cryptographic provisions is also important. If tax cuts are removed or deserted in the house version, the sector could face new headwinds.
Conclusion
The passage of Trump’s “big beautiful bill” in the Senate indicates a major financial change.
If it clears the House, crypto assets, particularly Bitcoin, could benefit from growing financial concerns and investors’ desire for alternative hedges.
However, volatility remains a risk. The Fed’s policies, inflation data, and legislative negotiations shape how sustainable crypto rallies will become.
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