US Congress Passes $5 Trillion Debt Ceiling Hike, Bitcoin Bulls Optimistic

On July 3, the US Congress passed the One Big Beautiful Bill Act, a controversial piece of legislation that significantly increases the US government’s borrowing ability. The bill, proposed by President Donald Trump, was passed along partisan lines with only two Republicans voting against it. Despite drawing significant criticism from Democrats and some Trump allies, the bill does not include any specific provisions for the cryptocurrency industry.

Market observers, however, remain optimistic about the potential benefits for Bitcoin (BTC) as a result of the bill. The legislation hikes the national debt ceiling by $5 trillion, a historic amount, which could lead to more money printing and potentially drive up the price of Bitcoin in the long run. According to analysts, more debt can lead to more money printing, which is good for BTC in the long run.

Crypto analyst Ranjay Singh noted that while there may be short-term fluctuations, the overall trend could be positive for Bitcoin. Nigel Green, CEO of an advisory firm, also pointed out that markets have already begun to respond, with long-term yields creeping up and assets like gold and Bitcoin rising on renewed fears about the erosion of purchasing power.

However, the bill's impact on the broader economy is a cause for concern. The legislation introduces significant tax cuts for the wealthiest earners and increases government spending, which could be offset by cuts to critical benefits programs and increased tariffs on global trade. According to analysts, this represents a "permanent reordering of the trade and spending model" that could have global economic implications.

Despite the lack of specific crypto provisions in the bill, pro-crypto lawmakers in Washington are already busy. On July 3, Senator Cynthia Lummis introduced a solo bill to address her concerns with the tax code for miners, including a de minimis exemption for digital asset transactions and capital gains of $300 or less, with an annual cap of $5,000.

Additionally, House Finance Committee Chair French Hill, House Agriculture Committee Chair Glenn Thompson, and Speaker Mike Johnson announced that the week of July 14 would be "Crypto Week," during which they plan to pass three separate bills related to the crypto industry. These bills include the CLARITY Act, the Anti-CBDC Surveillance State Act, and the Senate’s GENIUS Act, which regulates stablecoins and sets standards for issuers.

While the crypto industry appears to be gaining traction in Washington, the broader economic story of the Trump administration remains controversial. The bill's potential benefits for Bitcoin must be weighed against its broader economic implications, which could have significant consequences for the global economy.