The U.S. House passed President Trump’s sweeping budget bill—dubbed the “One Big Beautiful Bill”—on July 3, focusing on tax cuts and spending without any mention of cryptocurrencies. Though the absence of crypto-specific provisions disappointed industry advocates, analysts suggest the broader liquidity injected into the economy could support Bitcoin and other digital assets.
Bill Passes, Crypto Left Out
The 940-page budget package passed narrowly (218–214), extending tax cuts, strengthening immigration enforcement, and reducing funding for Medicaid and other entitlement programs. Pro-crypto amendments introduced by Senator Cynthia Lummis—covering mining and staking tax relief, capital gains simplifications, and de minimis exemptions—were all rejected. A new standalone crypto tax bill.
Market Reaction: Liquidity Over Legislation
Despite the lack of legislative wins, markets responded positively:
- Bitcoin nudged up about 0.24%, hovering near $110,000, while overall crypto market cap rose roughly 0.3%.
- Institutional analysts link this rise to the increased fiscal stimulus, estimating the bill could add $3–$5 trillion to the national debt, enhancing broad market liquidity.
Why Liquidity Matters for Crypto
High liquidity environments often spark appetite for risk-on assets. With government spending and tax cuts set to inject significant capital into financial markets, crypto—especially Bitcoin—could benefit:
- Acts as a hedge against inflation and fiat currency devaluation
- Benefits from increased capital availability chasing yield and returns in digital assets .
- Past fiscal stimuli have historically led to rapid BTC rallies—up to 38% post-2020 COVID bill bitget.com.
Altcoins like Ethereum and XRP also gained: Ethereum rose ~6%, XRP ~3.2%, reflecting shifting investor sentiment.
Snapshot Comparison
| Asset | Price Reaction | Analyst Insight |
| Bitcoin | +0.24%, ~$110K | Anticipated rally as liquidity climbs |
| Ethereum | +6% | Seen as growth beneficiary |
| XRP | +3.2% | Gains as inflation hedge |
Industry Response
While some investors applauded the macroeconomic shift, others were critical:
- Senator Lummis reintroduced a crypto tax-focused bill, responding to unmet needs within the budget.
- Democrat attempts to add stablecoin protections later stalled, with concerns over Trump-linked crypto ventures persisting.
Long-Term Outlook: A Hidden Push for Crypto
Although no direct regulatory victories were achieved, the sheer scale of fiscal expansion signals a new wave of investment appetite:
- Elevated liquidity likely channels into risk assets—crypto included.
- A weakening dollar narrative strengthens Bitcoin’s value appeal.
- Infrastructure-focused spending may indirectly support blockchain and DeFi ecosystems.
Bottom Line
The “Big Beautiful Bill” offers no immediate wins for crypto—but its economic ripple effects may prove more impactful than policy wins.
- Firms and investors should monitor liquidity flows and debt-market dynamics.
- Bitcoin might break beyond current levels, while Ethereum and XRP could advantage from renewed risk sentiment.
- Legislative efforts on crypto taxation and regulation remain ongoing, offering potential future catalysts.
In short: the bill didn’t deliver crypto relief, but it delivered liquidity—and that may matter more.