- Senate passes Trump’s $3.3 trillion bill with tie-breaking VP vote
- BTC rebounds above $106,000 amid inflation and debt concerns
- Crypto tax benefits dropped despite industry pressure
Bitcoin surged more than 10% above $106,000 following the passage by the U.S. Senate of a massive $3.3 trillion tax and spending bill. The bill, which was dubbed Donald Trump’s ‘One Big Beautiful Bill’, revived interest in digital assets. The bill had an inflationary effect and a weaker dollar outlook, which investors reacted to by transferring funds into Bitcoin as a hedge.
The Senate passed the legislation with 51 votes after the tie-breaking vote by the Vice President JD Vance. The bill includes tax cuts of $4.5 trillion with spending cuts of $1.2 trillion. The action caused bullish sentiment in Bitcoin, which tends to rise in periods of fiscal expansion and debt growth.
Source: CoinMarketCap
Bitcoin rebounded from an intraday low of $105,689 to recover the 106,000 mark, according to CoinMarketCap data. The passage of the bill created a buying pressure, as investors responded to the inflationary effects of a low federal revenue. Bitcoin is usually seen as a hedge in cases where government spending and debt are rising.
De Minimis Exemption Misses Out
As the legislation progressed, it lacked various crypto-related tax amendments that were under debate. Legislators and crypto advocates had insisted on amendments that would favor miners, stakers, and retail crypto users. However, the time lapse before the vote did not allow such additions to be completed or discussed.
Senator Cynthia Lummis made a last-minute attempt to include a crypto amendment in the Senate’s final vote sessions. The amendment proposed that staking rewards should be tax-exempt and provide better treatment of businesses that own digital assets. The amendment failed to make it in despite the increasing support as the deadline lapsed.
Crypto enthusiasts regarded the omission as a lost chance to modernize crypto taxation in the U.S. The proposed amendments were intended to make the policies fair and encourage innovation in the blockchain sphere. Nevertheless, crypto-related issues were sidelined in the final text due to the emphasis on the wider fiscal problems.
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Debt Growth Spikes Optimism Around Bitcoin
Market analysts add that the major implication is how the bill highlights the long-term growth in debt, which may keep fueling the demand for Bitcoin. The bill also shifted focus to the comparison between the unlimited supply of fiat money and Bitcoin’s maximum limit of 21 million. Investors now consider Bitcoin a more secure store of value amid increasing government spending.
The bill’s next destination is the U.S. House, where more political debate is likely to take place. Any modifications may alter the market perspective, although Bitcoin seems to benefit due to the economic transition. Traders now look out for follow-up policy developments that may directly affect crypto in the next few weeks.
Also Read| Senate Eyes Crypto Tax Reform in ‘Trump’s Big Beautiful’ Bill