Get Ready For Big Beautiful Bitcoin Marketcaps?
After a long night of back-and-forth, Senate Republicans managed to pass U.S. President Donald Trump’s massive tax and spending package, known as the controversial “One Big Beautiful Bill.” The vote was tied 50-50, and Vice President JD Vance had to step in to break it. While this is a big win for Trump, the bill still needs approval from the House of Representatives, where things could get messy and quite animated between Republicans and Democrats. The White House is showing where things currently stand for this bill to pass with their below published 6-step visualization (making an error indicating that it was the House that already passed the bill, when it was actually the Senate):
As for crypto traders, the discussions regarding the bill have certainly erupted. Below is the social volume for the word "beautiful". And just for good measure, below that is another chart showing mentions of "big", "beautiful", and "bill" on the same axis:
The bill covers a lot of ground, from tax cuts to deep spending cuts. But what really has crypto traders talking is how it might shake up the ability for markets to thrive under potential policy changes. Even though there were minimal direct wins for crypto included in the Senate version, the bigger picture around taxes, debt, and political drama could all end up affecting Bitcoin and altcoins in a big way. Traders are making mainly bullish proclamations after this next step has been checked off the list for the Big Beautiful Bill.
But despite the crowd optimism, one major letdown for the crypto world was the failure to include Senator Cynthia Lummis’ amendment. She wanted to fix some of the frustrating tax issues around things like staking, mining, and small transactions. Many in the industry were pushing hard for it over the weekend, but in the end, there just wasn’t enough time to get it into the final version.
All this said, even without the amendment, there are still reasons why crypto might get a short-term boost. The bill includes big tax cuts, like getting rid of taxes on tips and overtime. If people have more money in their pockets, they might feel more confident putting some of it into crypto and making more speculative inve. In the past, Bitcoin has jumped when consumer spending goes up and people are in a “risk-on” mindset. Below is a comparison of people mentioning bullish-related words in relation to the Big Beautiful Bill vs. bearish related words, showing clear favoritism toward the former:
One detail flying under the radar is the return of 100% bonus depreciation, and it could seriously pump up Bitcoin mining. If a company buys $1M worth of mining rigs, they can write off that full amount from their taxable income right away instead of spreading it out over years. That’s a huge incentive to load up on ASIC miners fast. As more miners come online, Bitcoin’s hashrate could rise, making the network even more secure. And since rising hashrate often follows increased investment during loose money cycles, it lines up with what we’ve seen before — when the money supply (M2) grows, Bitcoin tends to rise too. If Treasury bonds start piling up and buyers disappear, the Fed might step in, which could expand the money supply further and give crypto another boost.
But not everything in the bill is sunshine for the markets. To balance out the tax cuts, the bill makes deep cuts to healthcare and green energy programs. This led to a public fight between Trump and Elon Musk, who once supported him but now says the bill is a disaster. Musk even joked about starting a new political party and pulling Tesla out of key government partnerships. And there is a definite argument to be made that an angry and resentful Elon could have a slight bearish impact on crypto markets.
Tesla stock took a hit right after the vote, and interestingly, Bitcoin also dipped slightly. There’s been a pattern lately where Tesla and Bitcoin often move in similar directions, especially during big political moments. If Musk keeps clashing with Trump, or if Tesla loses funding and jobs, that could add pressure to crypto markets too.
Dogecoin got dragged into the drama too. Musk used to head a department jokingly called DOGE (short for the Department of Government Efficiency). Now he’s calling the bill a waste of money and warning it could kill future-focused companies. Crypto traders had fun with it, but it’s another reminder that prices aren’t just about charts and numbers. Sometimes they move based on personalities and headlines.
At the end of the day, the Senate passing this bill is a big political moment for not just the U.S, but the entire world. It’s also part of a larger story about where crypto fits into the future of money. Crypto markets often react fast and emotionally. And with markets dipping slightly as an initial reaction to this, it may be a sign that we are in a "sell the rumor, buy the news" situation. The mood of the crowd plays a huge role. Whether the bill can get past the next difficult steps or not, we will be watching closely and keeping you posted as it all plays out.
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Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.