The legislation known as President Donald Trump’s ‘grand, attractive’ proposal is on track to be enacted into law, an action that certain individuals contend could lead to higher U.S. budget deficits and debts over time. However, it’s predicted that this move might eventually drive up the values of Bitcoin and other digital currencies.
This legislation prolongs the tax cuts that President Trump enacted in 2017. Furthermore, it introduces fresh tax policies he advocated during his campaign, such as a $1,000 tax deduction for every child born within the country and exemptions for tips. Additionally, it increases the threshold for estate taxes to $15 million.
As a crypto investor, I firmly believe that the upcoming legislation, often referred to as the “grand” or “magnificent,” could potentially drive positive momentum for Bitcoin (BTC) and various altcoins. Here’s why:
1. Regulatory Clarity: The bill may bring clarity in terms of crypto regulation, fostering a more favorable environment for investments and growth within the digital currency market.
2. Institutional Adoption: Clearer regulations can encourage institutional investors to enter the crypto space, increasing demand and potentially driving up prices.
3. Mainstream Acceptance: Greater regulatory certainty could lead to increased mainstream acceptance of cryptocurrencies as a legitimate investment option, further boosting their value.
Big, beautiful bill to boost Bitcoin and altcoins
Initially, the proposed bill is projected to boost the U.S. national debt and budget deficit. According to the Committee for a Responsible Federal Budget, this increase could amount to $3.3 trillion over the next decade. Moreover, it’s anticipated that the debt-to-GDP ratio would climb from 100% to 125%, compared to 117% as stipulated under current regulations.
The increasing debt burden is a consequence of the United States no longer holding its top credit rating (AAA) from Moody’s. In 2011, S&P Global and Fitch Ratings had already downgraded the nation’s rating, with Fitch doing so again in 2023.
The growing possibility of a U.S. government failure to meet its financial obligations is seen by some as beneficial for Bitcoin, a form of digital currency that’s often viewed as a secure investment option. Notably, analysts such as Larry Fink from BlackRock view Bitcoin as analogous to gold in the digital realm.
A recent analysis by BlackRock points out that Bitcoin offers a distinct investment opportunity, with many investors viewing it as a means to protect their portfolios from increasing U.S. debt levels.
Experts point out that the number of Bitcoins in circulation is limited to 21 million, with a system that reduces its production every four years by lessening block rewards. This decrease in supply coincides with an increase in interest from institutions and governments.
Additionally, the proposed “large, attractive tax law” might stimulate Bitcoin growth as it offers fresh tax incentives, thereby augmenting the disposable income for numerous American citizens.
An increase in disposable income might encourage certain individuals to invest in cryptocurrencies like Bitcoin and various altcoins. Notably, during the COVID-19 pandemic, many Americans utilized their stimulus payments to acquire Bitcoin.
Furthermore, this legislation is expected to increase the U.S. M2 money supply, potentially leading the Federal Reserve to print more money to cover escalating debts. Notably, Bitcoin’s value has often mirrored that of M2 in the past, with a slight delay. Generally speaking, other cryptocurrencies tend to align with Bitcoin’s price fluctuations.
$BTC is perfectly mimicking Global M2 supply with a 90-day offset.
Soon moon. 🚀
— Ted (@TedPillows) May 5, 2025
Ultimately, the proposed tax reductions and lessening of regulations in the bill might balance out the effects of Donald Trump’s tariffs, and potentially decrease the likelihood of a recession. A lower risk of a recession could positively influence Bitcoin and various other digital currencies (altcoins).
Read More
- 50 Ankle Break & Score Sound ID Codes for Basketball Zero
- Who Is Harley Wallace? The Heartbreaking Truth Behind Bring Her Back’s Dedication
- 50 Goal Sound ID Codes for Blue Lock Rivals
- How to play Delta Force Black Hawk Down campaign solo. Single player Explained
- Mirren Star Legends Tier List [Global Release] (May 2025)
- Elden Ring Nightreign Enhanced Boss Arrives in Surprise Update
- KPop Demon Hunters: Real Ages Revealed?!
- Pacers vs. Thunder Game 7 Results According to NBA 2K25
- Jeremy Allen White Could Break 6-Year Oscars Streak With Bruce Springsteen Role
- League of Legends MSI 2025: Full schedule, qualified teams & more
2025-05-20 19:40