One Big Beautiful Bill Act Boosts Bitcoin's Appeal as Dollar Weakens

Generated by AI AgentCoin World
Saturday, Jul 5, 2025 7:51 am ET1min read
BTC
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President Donald Trump has signed into law the One Big Beautiful Bill Act, a tax cut and spending bill that includes a $5 trillion increase in the national debt ceiling. This move allows the U.S. Treasury to borrow beyond its January 2025 reinstated limit of approximately $36.1 trillion. The bill has sparked debate within the crypto industry, with Elon Musk questioning the significance of Doge's $160 billion savings in light of the massive debt increase.

The One Big Beautiful Bill Act is expected to exponentially increase the global money supply in the coming quarters. This influx of cash is likely to drive more investment into

Bitcoin
, as the digital currency emerges as a better alternative to traditional assets. The bill's passage has already weakened the U.S. dollar against major currencies, including the euro and the Japanese yen, and is expected to further bolster Bitcoin's appeal as a hedge against inflation.

Bitcoin's price has been trading at a crucial crossroads, with a psychological resistance level around $109,396. The flagship coin has experienced a falling trend in recent days, with a midterm target of about $100k. However, the bearish sentiment could be invalidated if Bitcoin's price consistently closes above $100k in the coming days. The One Big Beautiful Bill Act's implementation could position Bitcoin for a parabolic rally in the coming months, as the digital currency continues to attract more capital from institutional investors.

The pro-crypto regulations in the United States have increased investors' confidence in Bitcoin, which has a finite supply of 21 million. The ongoing Middle East ceasefire, brokered by President Trump, has also contributed to a shift in investors' sentiment towards risk-on behavior, further driving capital into the Bitcoin market. With the global money supply set to rise exponentially in the coming quarters, Bitcoin is well-positioned to benefit from increased cash inflow and emerge as a leading digital global financial instrument.