At the 4th of July, the Independence Day, the "One Big Beautiful Bill Act" was signed into law by President Trump. In this idea I want to take a closer look at some points of this law and explain why I consider it VERY bullish for most of financial markets, and especially for crypto.
Here are some key points of the law:
What changes can happen in the economy? Big tax breaks combined with increased expenses cause the growth of financial deficit, the projected by CBO deficit can reach $3 trillion. In this situation the only solution is increasing the national debt which makes Interest Rates climb higher (Yale’s Budget Lab forecasts a 1.2 pp increase in the 10‑year yield).
Why do I think this is bullish for most of stocks and mainly for crypto?
To sum up, I believe the Big Beautiful Law is, to put it mildly, not good for US economy. However, local effects on stock & crypto markets can be considered positive for investors & traders. With this said, I believe we can expect
BTC to reach $150,000 goal this year and mark this milestone as an ATH for the current bull cycle.
Here are some key points of the law:
- Raises the U.S. debt ceiling by $5 trillion, the largest single increase in U.S. history
- Makes many Trump-era 2017 tax cuts permanent: keeps lower individual tax rates, preserves expanded standard deduction, retains corporate tax rate at 21%
- Introduces new tax breaks: increases Child Tax Credit, exempts tips, overtime, and Social Security from federal income tax (with limitations)
- Adds ~$150 billion to defense and another $150 billion toward border enforcement, including massive ICE budget increase
- Trims SNAP food aid by ~$186–200 billion, tightening eligibility (e.g. raising work‑requirement age)
What changes can happen in the economy? Big tax breaks combined with increased expenses cause the growth of financial deficit, the projected by CBO deficit can reach $3 trillion. In this situation the only solution is increasing the national debt which makes Interest Rates climb higher (Yale’s Budget Lab forecasts a 1.2 pp increase in the 10‑year yield).
Why do I think this is bullish for most of stocks and mainly for crypto?
- The increase of debt ceiling has always had a positive impact on the crypto and namely on $BTC. The best example is Fiscal Responsibility Act that was signed back in June 5, 2023. This act increased the debt ceiling for +$4.7 billion, after that Bitcoin surged upwards from $25,000 to $75,000 in ~half a year. Similar outcome can be expected now too.
- Market perceives U.S. fiscal loosening as inflationary and dollar-weakening, making Bitcoin (as a decentralized and limited-supply asset) more attractive.
DXY has already shown signs of weakness. - Large deficits often force future monetary easing or Fed bond buying to absorb debt. Lower interest rates and more liquidity are historically bullish for risk assets, including crypto.
- Rising yields and bond sell-offs spook traditional markets. In this situation, Bitcoin becomes an attractive uncorrelated hedge for portfolios amid volatility in traditional assets.
To sum up, I believe the Big Beautiful Law is, to put it mildly, not good for US economy. However, local effects on stock & crypto markets can be considered positive for investors & traders. With this said, I believe we can expect
BTC to reach $150,000 goal this year and mark this milestone as an ATH for the current bull cycle. 
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Klondike Official Links:
Website:
klondikepro.com/
Public Telegram Channel:
t.me/CryptoKlondike
Twitter:
twitter.com/Robert_Klondike
Trade on Bybit with us:
partner.bybit.com/b/6694
Website:
klondikepro.com/
Public Telegram Channel:
t.me/CryptoKlondike
Twitter:
twitter.com/Robert_Klondike
Trade on Bybit with us:
partner.bybit.com/b/6694
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.