The U.S. Senate has passed a bill proposed by President Donald Trump that may significantly impact the cryptocurrency market. This bill involves increasing the national debt and raising inflation concerns.
Impact of the Bill on Bitcoin
The passed bill will raise the U.S. national debt, which could lead to inflation. Historically, investors view Bitcoin as a hedging asset against inflation and a devaluing dollar. Should inflation rise, demand for Bitcoin as a digital safe haven may increase.
Ethereum and Altcoins in Light of the Bill
Market analyst Marius suggests that Ethereum and infrastructure-based altcoins may also benefit from the bill, as investors look for higher-risk assets. However, speculative tokens and meme coins may underperform in a cautious market environment.
Crypto Investors' Reaction
Crypto analyst Crypto Dad highlights that the newly passed 'Big Beautiful Bill' offers significant benefits to the crypto sector. Notable advantages include: * A de minimis exemption for transactions under $300. * Simplified rules for staking and mining rewards. These changes, combined with inflationary pressure from major tax cuts and increased spending, enhance Bitcoin's narrative as an inflation hedge.
Thus, the adoption of Bitcoin and other cryptocurrencies may rise following the passage of the 'Big Beautiful Bill'; however, institutional investors may be more cautious pending further actions from the Federal Reserve.
