The upcoming U.S. bill, called the “One Big Beautiful Bill Act” (OBBBA), could serve as a critical catalyst for Bitcoin and other cryptocurrencies.
Potential Impact of Tax Cuts
The bill includes tax cuts amounting to $4.5 trillion, potentially increasing liquidity in the economy. Analyst CryptoBusy notes that past tax reforms have often led to investments in stable assets like gold and Bitcoin. The proposal provides 100% bonus depreciation for companies and expands R&D tax deductions, which could encourage entrepreneurs to invest in cryptocurrency.
Risks of Increased Debt Load
The legislation is expected to raise U.S. federal debt by $3.3 trillion within the next decade. This could depreciate the dollar's value and drive investors to seek safe-haven assets like Bitcoin. Trump’s prior administration shows a favorable stance towards cryptocurrencies, reducing legal risks and facilitating institutional adoption of Bitcoin.
Prospects for Institutional Investment
If the bill is passed, the increasing liquidity and tax advantages may widen the horizons for institutional investment in Bitcoin and other digital assets. Experts predict that the ongoing bullish trend in the cryptocurrency market could lead to new price records for Bitcoin.
The OBBBA could significantly impact the cryptocurrency market through tax benefits, but it also poses risks of increased debt load. Investors and analysts are closely monitoring the developments regarding the bill.
