Crypto Braces for a Hidden $4.5 Trillion Catalyst for Bitcoin, Ethereum, Cardano, XRP Price

Crypto prices stabilized on Thursday, helped by the falling US inflation, Donald Trump’s flexibility on tariffs, and Paul Atkins confirmation as SEC chair. Still, Bitcoin, Ethereum, Cardano, and XRP prices have a hidden $4.5 trillion catalyst that may propel them higher this quarter. 

Crypto Prices Awaits for a $4.5 Trillion Catalyst

Most crypto investors are ignoring a $4.5 trillion catalyst hidden in plain sight. This catalyst is Donald Trump’s Big, Beautiful Bill that will may be passed into law soon. In an X post, Trump called it the biggest tax cuts in USA history, saying:

“Great News! “The Big, Beautiful Bill” is coming along really well. Republicans are working together nicely. Biggest Tax Cuts in USA History!!! Getting close.”

The bill will be bullish for crypto coins like Bitcoin, Ethereum, Cardano, and XRP because of the amount it seeks to cut. The estimate is that it will extend the 2017 cuts in the Tax Cuts and Jobs Act. On top of this, it will have more incentives like eliminating taxes on tips and overtime pay.

This means that taxpayers will have more money in their bank accounts, which some may divert to investing in the crypto market. Historically, many young people use their savings to speculate in assets like Bitcoin, Cardano, Ethereum, and XRP. 

Interest Rate Cuts to Boost Bitcoin, Cardano, Ethereum, and XRP Price

On top of this, the Federal Reserve may deliver another bazooka by cutting interest rates now that US inflation is falling. Data released on Thursday showed that US inflation dropped to 2.4%, and is slowly nearing the Fed target of 2.0%. 

The odds of a rate cut have risen after Donald Trump declared tariffs on most countries. While he has paused tariffs on over 70 countries, he maintained the base 10%. He also maintained hefty taxes on cars, steel, and aluminum. Additionally, he boosted China tariffs to 125%. 

Therefore, in a note, Mark Zandi, the respected economist at Moody’s, boosted his recession odds to 60%. He also warned that global investors may start losing faith in the US, making its bonds less of a safe haven.

Therefore, a combination of falling inflation and slow economic growth means that the Fed may deliver more cuts than expected. Polymarket traders have placed a 52% chance of the Fed cutting by June this year. Another poll shows that more participants see the Fed cutting rates three times this year. 

On top of this, the Senate voted for Paul Atkins as the SEC Chair, which will lead to more deregulation and ETF approvals.

The Bottomline

Bitcoin, Cardano, Ethereum, and XRP price remain in a deep bear market this year and are in search of a catalyst. The top catalysts to watch will be the potential interest rate cuts, US tax cuts, and the recent confirmation of Atkins as the SEC chair.