The U.S. Senate Has Passed Trump's 'Big Beautiful': What Does This Mean for Crypto

The U.S. Senate has passed former President Donald Trump's comprehensive financial package worth $3.3 trillion, known as the "Big Beautiful Bill." As this law is being sent to the House of Representatives for final approval, the crypto market is closely following the potential impact. The prices of Bitcoin and Ethereum remained stable on Tuesday despite the overall market decline. However, an analysis by BeInCrypto predicts that this bill, if enacted, could reshape investor sentiment and capital allocation. Bitcoin Has the Potential to Increase in Value as a Financial Hedge The most immediate impact will be on Bitcoin. This bill is expected to increase national debt to over $3 trillion. Therefore, market participants are bracing for long-term inflationary pressure. Bitcoin, often regarded as a hedge against the depreciation of fiat currency, may benefit when demand increases again. Most importantly, a weaker dollar and the declining confidence in U.S. financial management may further reinforce the view that Bitcoin is "digital gold."

Altcoins Can Experience Uneven Benefits Ethereum and other large-cap altcoins may also receive support in the short term. Shifting risk away from bonds and into alternative assets often boosts cryptocurrencies in general. However, not all tokens have the same position. Infrastructure and utility tokens will benefit from increasing activity and capital flow. On the other hand, meme coins and speculative assets may still be volatile or underperform. Clearer tax rules — such as exemptions for small cryptocurrency transactions — could encourage wider adoption, particularly among retail users. The Psychology of Retailers and Organizations May Differ Retail investors may respond positively to the reduction of personal taxes and the simplification of crypto reporting. If the final bill includes cryptocurrency-friendly tax reforms — including minimum exemptions and clarifications on income from staking — this could ease the burden on small traders and DeFi users. The mindset of organizations may be more cautious. The rapid accumulation of debt and potential inflation prospects may cause institutional investors to adopt a wait-and-see approach, especially if the Federal Reserve tightens policy in response.

Short-Term Outlook: The Crypto Market May Rise Higher If the House passes the bill with the cryptocurrency provisions intact, Bitcoin and Ethereum could rise further. The rotation of capital out of the Treasury, due to rising public debt in the United States and financial instability, could push prices higher.

The total market capitalization of the crypto market may test levels of $3.5 to $3.7 trillion in the near future. However, the degree of price increases will depend on broader macroeconomic conditions, including interest rate policy, regulatory enforcement, and global liquidity trends. Medium-Term Outlook: The Fed's Policy Will Be Key The long-term impact on cryptocurrency depends on how the Federal Reserve responds to the inflationary effects of the bill. If the Fed raises interest rates to combat financial expansion, this could strengthen the dollar and put pressure on the crypto market. Conversely, if the Fed continues to maintain an accommodative policy, digital assets may continue to benefit. The existence of the cryptocurrency provisions of the bill is also very important. If the tax relief measures are removed or weakened in the House version, the sector may face new hurdles. The Last Line The Senate's passage of Trump's "great big bill" marks a significant financial change. If passed by the House of Representatives, cryptocurrency assets — particularly Bitcoin — are likely to benefit from growing financial concerns and investors' desire for alternative hedges. However, volatility remains a risk. The Fed's policies, inflation data, and legislative negotiations will shape the sustainability of any crypto price increase.