Trump Tax Bill Shakes Crypto Markets With New Economic Shifts

Trump Tax Bill's Impact on Crypto Markets

The recently signed One Big Beautiful Bill Act by President Trump extends tax cuts, influencing crypto market sentiment. While it lacks direct crypto tax relief, its broader economic effects could indirectly boost digital assets.

Key Provisions of the Tax Bill

• Permanent extension of earlier tax cuts for individuals and small businesses.
• Abolition of estate tax for family farms and small businesses.
• Temporary tax breaks on tips, overtime, and auto loan interest.
• $150 billion allocated to defense and border security, with cuts to Medicaid and food welfare programs.

Indirect Crypto Market Effects

• Increased disposable income from tax cuts may drive demand for Bitcoin as an alternative asset.
• Rising federal debt and social program cuts could fuel crypto adoption as a hedge against economic uncertainty.
• Polarization and fiscal policy uncertainty may push institutional and retail investors toward Bitcoin as a store of value.

Market Reaction & Investor Sentiment

• Bitcoin's price surged to $108,967, with traders speculating on politically themed tokens.
• A Harrisx survey found over 70% of U.S. crypto investors optimistic about Trump’s pro-business stance.
• Historical patterns suggest major policy shifts often precede crypto volatility, as seen in 2017 tax reforms.

While the bill doesn’t directly address crypto, its macroeconomic implications could shape market trends in the coming months.

Source: Live Bitcoin News