The upcoming vote in the U.S. House of Representatives on the “One Big Beautiful Bill” may reshape the financial landscape and affect Bitcoin.
Impact of Tax Cuts on Bitcoin
The OBBBA proposes substantial tax benefits for individuals and corporations, which could enhance economic liquidity. Historical trends suggest that such liquidity surges often redirect funds into solid investment vehicles like gold and Bitcoin. Of particular interest are provisions for companies, such as the ability to fully depreciate expenses immediately and broadened deductions for R&D costs, which may encourage companies to consider Bitcoin as a balance sheet asset.
Debt's Impact on Bitcoin Plans
If implemented, the tax cuts are expected to raise the federal debt by $3.3 trillion within ten years. This could result in a devaluation of the dollar, driving more investors to Bitcoin, an asset less susceptible to government control. Trump's unexpectedly positive stance on cryptocurrencies further reduces regulatory fears, potentially expediting institutional interest.
Outlook and Expectations
The House vote is set to take place despite internal disagreements within the Republican Party. House Speaker Mike Johnson is responsible for rallying the necessary votes, and a simple majority will suffice for passage. Should the act be approved, many anticipate that Bitcoin's current bullish momentum could continue.
The situation remains under observation, and potential legislative changes could usher in a new phase for crypto investments.
