House Passes Budget Bill Boosting Crypto Market 0.3%

The U.S. House of Representatives passed a significant budget bill, known as the "One Big Beautiful Bill," backed by President Trump. The bill, which includes substantial tax cuts and reduced benefits, was approved with a narrow margin of 218–214 votes. Two Republican representatives, Thomas Massie and Brian Fitzpatrick, voted against the bill due to concerns over the increased U.S. deficit.

Despite the bill's extensive changes to taxes, immigration enforcement, and entitlements like Medicaid, it did not include any provisions related to cryptocurrency. This omission occurred despite efforts by pro-crypto Senator Cynthia Lummis, who proposed several crypto-related amendments. These amendments aimed to address issues such as taxes on mining and staking income, which are crucial concerns for the industry. However, these amendments did not pass, leaving these decisions for future legislation. Notably, on the same day the budget bill passed, Lummis introduced a new bill specifically focused on crypto taxation.

The crypto industry may be disappointed by the lack of direct legislative gains, but the market responded positively to the bill's passage. Bitcoin (BTC) traded near the $110,000 level, up 0.24% over the past 24 hours, while the overall crypto market capitalization rose 0.3%. This positive reaction is likely due to the expected stimulative effect of the budget. Economists project that the new fiscal package could add between $3 trillion and $4 trillion to the U.S. national debt over the next decade, driven by lower taxes and increased spending.

This surge in deficit spending is anticipated to inject liquidity into the financial system, a development that typically lifts both equities and crypto assets. While the bill itself did not address digital assets, its potential to boost liquidity has already begun to influence market sentiment. The bill's impact on the crypto market is primarily indirect, as it is expected to increase liquidity. This liquidity boost could potentially benefit the crypto market, as ample liquidity has historically driven investors towards higher-yielding assets.

The bill's passage comes at a time when the crypto market is experiencing a period of relative calm, with few signs of excessive froth or broad deleveraging. This stability could be attributed to the contained levels of crypto-leverage, which favors maintaining spot exposure and staying patient as the market progresses through a period known for its seasonal apathy. The bill's passage also comes at a time when the crypto market is experiencing a period of relative calm, with few signs of excessive froth or broad deleveraging. This stability could be attributed to the contained levels of crypto-leverage, which favors maintaining spot exposure and staying patient as the market progresses through a period known for its seasonal apathy. The bill's passage also comes at a time when the crypto market is experiencing a period of relative calm, with few signs of excessive froth or broad deleveraging. This stability could be attributed to the contained levels of crypto-leverage, which favors maintaining spot exposure and staying patient as the market progresses through a period known for its seasonal apathy.