No crypto wins in Trump’s ‘big beautiful bill,’ but market eyes liquidity boost
While Trump’s budget did not tackle any crypto issues, the liquidity boost might still be a boon for crypto assets.
“Big Beautiful Bill” may still boost crypto markets, despite lacking any crypto-related provisions. On Thursday, June 3, the U.S. House passed House Resolution 1, the landmark budget bill backed by President Donald Trump.
The massive budget, which expands tax cuts and reduces benefits, passed with a narrow 218–214 vote, with just two Republican dissenters: fiscally conservative Thomas Massie of Kentucky and anti-Trump Republican Brian Fitzpatrick. Massie objected on the grounds that the bill would significantly add to the U.S. deficit.
Despite sweeping changes to taxes, immigration enforcement, and entitlements like Medicaid, the massive budget did not have any provisions related to crypto. This is despite efforts by pro-crypto Senator Cynthia Lummis, who proposed several crypto-related amendments.
These amendments included changes to taxes on mining and staking income, a crucial concern for the industry. Still, these amendments ultimately did not pass, leaving the decision on these issues for later bills. Notably, on the same day that the budget bill passed, Lummis introduced a new bill specifically on crypto taxation.
Bitcoin up after Trump’s budget passes
While the crypto industry may be disappointed by the absence of direct legislative gains, the market responded positively. 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%.
The positive reaction likely stems from 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, due to a combination of lower taxes and increased spending.
This surge in deficit spending is expected 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.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Micron now earns more than Apple! Apple urgently needs chips, Micron holds pricing power.
Micron Technology reported a net profit of $37.7 billion in the fourth fiscal quarter, surpassing Apple's $29.8 billion for the same period, thus becoming the more profitable company for the quarter. The memory shortage has given Micron strong pricing power, with its CEO stating that they “cannot meet customer demand.” The revenue guidance for next quarter is as high as $61.5 billion. Meanwhile, Apple's gross margin continues to be pressured by persistent memory costs, having dropped from 49.3% to a guidance range of 46.5%.
The "Eye of the Storm" in the Global Economy: Debt Crisis in Developed Countries
The IMF warns that developed economies are becoming the "eye of the storm" for global debt risks. Countries such as the United States and France accumulated high levels of debt during periods of low interest rates, but now rising interest rates are pushing up repayment costs, and fiscal consolidation faces political resistance. BofA Securities points out that the United States is facing declining tax revenues, France has structural income decline issues, and the UK and Japan are also under pressure. The deteriorating debt sustainability of developed countries may impact global financial markets through shocks in interest rates and capital flows.

The US market narrative undergoes a "dramatic reversal": shifting from "AI-driven deflation and controllable US debt" to "AI squeezing the bond market, and Bassen unable to control long-term interest rates"
Deutsche Bank points out that the market narrative regarding the U.S. economy has shifted from "AI drives down inflation" to "AI-related bond issuance pushes up U.S. Treasury yields," but pessimism may be overdone. The bank believes that the real risks underestimated by the market are security incidents in the AI ecosystem, failed IPOs, or underwhelming revenues, which could undermine the dollar and support the bond market. In addition, France's fiscal difficulties are putting new pressure on the euro.
