The US Senate has barely passed the $3.3 trillion fiscal package of former President Donald Trump, known as the "Big Beautiful Bill (OBBB)". As this bill is currently proceeding to final approval in the House of Representatives, the cryptocurrency market is watching its potential impact.
Bitcoin and Ethereum prices remained stable on Tuesday despite the overall market decline. However, according to BeInCrypto analysis, if this bill is implemented, it could change investor sentiment and capital allocation.
Bitcoin Could Rise as a Financial Hedge
The most immediate impact will be on Bitcoin. This bill is expected to increase national debt by over $3 trillion. Therefore, market participants are preparing for long-term inflation pressure.
Bitcoin is often considered a hedge against legal tender value decline and could benefit from new demand.
Most importantly, a weak dollar and declining trust in US fiscal management are likely to strengthen Bitcoin's "digital gold" narrative.
Altcoins Could See Uneven Benefits
Ethereum and other major altcoins could also receive short-term support. Risk rotation from bonds to alternative assets positively impacts cryptocurrencies overall.
However, not all tokens are in the same position. Infrastructure and utility tokens could benefit from increasing activity and capital flows.
The Big Beautiful Bill (BBB) passed the Senate. It returns to the House and will likely pass to Trump's desk for his signature. The more debt, the better for Altcoins. pic.twitter.com/2Aeb8Wp7C9
— Marius BitcoinTAF.com (@LandM_Marius) July 1, 2025
Meme coins and speculative assets, on the other hand, could be highly volatile or subdued.
Clear tax regulations — such as exemptions for small cryptocurrency transactions — could encourage broader adoption, especially among retail users.
Divergent Investor Sentiment Expected
Retail investors could react positively to personal tax reductions and simplified cryptocurrency reporting.
If the final bill includes cryptocurrency-friendly tax reforms — including small transaction exemptions and staking income clarity — it could reduce friction for small traders and DeFi users.
Institutional investor sentiment might be more cautious. Rapid debt accumulation and potential inflation outlook could make institutional investors adopt a wait-and-see approach if the Federal Reserve might strengthen policies in response.
One Big Beautiful Bill and #Bitcoin taxation
— MartyParty (@martypartymusic) June 29, 2025
The "One Big Beautiful Bill" includes provisions that could impact Bitcoin and other digital asset taxes. Specifically, it proposes eliminating capital gains tax on Bitcoin transactions under $600, aiming to treat small crypto…
Short-Term Outlook: Potential Cryptocurrency Market Rise
If the House passes the bill while maintaining cryptocurrency provisions, Bitcoin and Ethereum could rise further. Capital rotation from US Treasury bonds due to national debt and fiscal uncertainty could drive prices higher.
The total cryptocurrency market capitalization could test the range of $3.5 to $3.7 trillion in the short term.
However, the rally's extent will depend on broader macroeconomic conditions, including interest rate policies, regulatory enforcement, and global liquidity trends.
Medium-Term Outlook: Federal Reserve Policy is Key
The long-term impact on cryptocurrencies depends on how the Federal Reserve responds to the bill's inflationary effects.
If the Fed raises interest rates to curb fiscal expansion, this could strengthen the dollar and pressure the cryptocurrency market. Conversely, if the Fed maintains an accommodative stance, digital assets could continue to benefit.
The Fed is bracing for stagflation:
— The Kobeissi Letter (@KobeissiLetter) July 1, 2025
The number of FOMC members who see upside risks to both their inflation and unemployment forecasts reached 14 in May.
Furthermore, 18 and 17 members saw upside risks to inflation and unemployment, respectively, in March.
On the other hand,… pic.twitter.com/G4674kS2iB
The survival of the bill's cryptocurrency provisions is also crucial. If tax relief measures are removed or weakened in the House version, this sector could face new headwinds.
Conclusion
The Senate's passage of Trump's "Big Beautiful Bill" represents a significant fiscal change.
If it passes the House, cryptocurrency assets — especially Bitcoin — are likely to benefit from growing fiscal concerns and investor appetite for alternative hedges.
However, volatility remains a risk factor. Federal Reserve policies, inflation data, and legislative negotiations will determine the sustainability of the cryptocurrency rally.
