Big Beautiful Bill, $5T Debt Ceiling To Benefit BTC price?
United States Senators advanced President Trump’s ‘One Big Beautiful Bill,’ proposing a $5 trillion debt ceiling increase, which has sparked controversy. Bitcoin advocates speculate this could lead to a new all-time high in 2025, despite historical trends showing that past debt ceiling increases often resulted in bearish outcomes for Bitcoin. Currently, Bitcoin remains steady at $105,000, unchanged over five months. The Congressional Budget Office estimates the bill will add $3.3 trillion to the federal deficit over the next decade. Critics argue that raising the debt ceiling amid record deficits contradicts claims of controlling US debt. The Federal Reserve's response to interest rates will significantly impact debt servicing costs and the dollar's strength. Higher Treasury yields typically correlate with Bitcoin price increases, but recent trends suggest a potential decoupling. Capital is flowing into assets like Bitcoin, indicating investor reactions to a weakening dollar. Historical patterns do not establish a direct link between debt ceiling increases and Bitcoin rallies.
