Trump's 'Big and Beautiful Plan' has been passed by the Senate. What are the potential impacts on the Crypto Assets market?

The U.S. Senate passed President Trump's multi-trillion dollar fiscal stimulus plan (the "Big and Beautiful Act"), which raised the national debt ceiling and intensified inflation concerns. As the US dollar weakens and fiscal uncertainty increases, it may lead investors to start shifting from bonds to cryptocurrencies, thereby driving up the prices of Bitcoin and Ethereum.

The bill is currently in the final review process in the House of Representatives. If adopted, the crypto tax reform (such as small transaction tax exemptions) could make the cryptocurrency market more friendly to retail investors, thereby promoting market development and adoption. The market impact of cryptocurrencies Despite the overall market decline, the prices of Bitcoin and Ethereum have remained resilient after the bill's passage, showing a daily range consolidation trend. Analysis predicts that once the bill is passed, it could reshape investor sentiment and capital allocation.

Bitcoin is often seen as a hedge against the depreciation of fiat currencies, potentially benefiting from new demand. The weakening of the dollar and declining investor confidence in U.S. fiscal management may also reinforce the notion of Bitcoin as "digital gold."

At the same time, Ethereum and other large-cap altcoins may also receive short-term support, as the shift of risk from bonds to alternative assets typically boosts cryptocurrencies. However, not all tokens have the same positioning, and meme coins and speculative assets may continue to fluctuate or perform poorly. The impact of investor market sentiment Retail investors may respond positively to lower personal income taxes and simplified cryptocurrency reporting. If the final bill includes crypto-friendly tax reforms, it could reduce friction for small traders and DeFi users. However, institutional investor sentiment may be more cautious, especially in the context of the Federal Reserve tightening policies.

Analysis suggests that if the House of Representatives subsequently approves the bill and retains the cryptocurrency provisions, Bitcoin and Ethereum may rise further. The total market capitalization of cryptocurrencies could test the range of $3.5 trillion to $3.7 trillion in the short term. However, the extent of the rebound will depend on broader macroeconomic conditions, including interest rate policies, regulatory enforcement, and global liquidity trends. The impact of policy interest rates on the cryptocurrency market However, if the Federal Reserve chooses to raise interest rates to respond to the expansion of fiscal debt, this could strengthen the dollar and put pressure on the cryptocurrency market. Conversely, if the Federal Reserve maintains an accommodative policy, digital assets may continue to benefit.

In summary, the passage of the "Big and Beautiful Act" marks a significant shift in fiscal policy, bringing new growth momentum to the cryptocurrency market. However, the market still experiences volatility and uncertainty due to the Federal Reserve's policy direction, inflation data, and legislative progress, which will determine the sustainability of the cryptocurrency rally. At this critical moment, the future of the cryptocurrency market will depend on the interplay of macroeconomic conditions and the regulatory environment.

Conclusion: Trump's "Big and Beautiful Act" passing in the Senate undoubtedly brings new vitality and opportunities to the cryptocurrency market. Mainstream crypto assets like Bitcoin and Ethereum, due to their functions as hedges against inflation and currency depreciation, may benefit from this policy shift. However, the volatility risk in the market still exists, and the Federal Reserve's policy direction, inflation data, and legislative progress will be decisive factors. For investors, this is a time that requires careful observation and flexible responses.

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