Sign Up on MEXCBreaking: US Senate Passes Donald Trump’s ‘One Big Beautiful Bill’, BTC Price Reacts
Highlights
- Vice President JD Vance broke the tie to pass the One Big Beautiful Bill.
- The bill focuses on tax cuts and government spending, which could impact the crypto industry.
- The Bitcoin price is back above the $106,000 psychological level amid this development.
In a hard-fought win for Donald Trump and his allies, the US Senate has passed the $3.3 trillion tax and spending cut bill, also known as the ‘One Big Beautiful Bill.’ The BTC price is back above the $106,000 psychological level, given the impact the proposed legislation could have on crypto.
BTC Price Back Above $106k As Senate Passes Trump’s Tax Bill
CoinMarketCap data shows that the Bitcoin price is back above the psychological $106,000 level following the Senate’s passage of Donald Trump’s tax bill. The flagship crypto had dropped to an intraday low of $105,689 earlier in the day.
However, the BTC price has now received a major boost with the passing of the “One Big Beautiful Bill.” According to a Bloomberg report, Republicans were able to pass the $3.3 trillion tax bill after Vice President JD Vance voted to break the tie, with 50 senators voting in favor and the other 50 voting against the bill.
The One Big Beautiful Bill will now head to the US House for a similar deliberation by the representatives. The bill, which combines $4.5 trillion in tax cuts and $1.2 trillion in spending cuts, provides a bullish outlook for Bitcoin and the broader crypto market.
John Deaton described the bill as a “walking billboard and advertisement for buying Bitcoin.” Meanwhile, BitMEX co-founder Arthur Hayes alluded to the fact that the bill shows that the government has no plans to stop printing more money, which makes a case for BTC given its limited supply as against the dollar.
As CoinGape reported earlier today, the One Big Beautiful Bill will increase the US debt ceiling, allowing the government to borrow more money than it earns. This potentially weakens the dollar against Bitcoin, since investors could run to the flagship crypto as a hedge against the dollar’s decline due to the government’s fiscal policy. This demand would potentially send the BTC price higher.
Crypto Tax Amendments Excluded From The Bill
The One Big Beautiful Bill passed without crypto tax amendments, which would have also provided a huge boost for the BTC price and other crypto assets. As CoinGape reported, Senator Cynthia Lummis had proposed to include tax reforms that will eliminate double taxation for Bitcoin miners and crypto stakers.
Furthermore, the Senator also proposed an amendment to waive taxes on crypto transactions under $300 or those with a $5,000 yearly cap. However, as Journalist Eleanor Terrett revealed, the crypto tax proposal failed to come up during the amendment process and was eventually left out of the tax bill.
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