‘Big Beautiful Bill’ can provide new boost to Bitcoin

While Bitcoin is trading near its ATH this weekend, investors are already worrying about the next item on their list: the rising US debt ratio. If the Republican Party approves Donald Trump’s latest tax bill next week, the debt ratio of the world’s largest economy will grow from 100% to as much as 125% by 2030. Crypto analysts however are positive and claim that this is very bullish for Bitcoin.

Liberation day

Donald Trump always has very simple names for his plans. The name of his memecoin was simply ‘Trump’, his project for global import tariffs was called ‘Liberation Day’ and now he is proposing his new tax law called ‘big beautiful bill’. The American late night hosts have made quite a few jokes about, but in Congress the ‘bill’ is being seriously debated. If the legislation is approved, and it seems that it will, it will increase the American national debt and budget deficit.

The US recently lost its last AAA credit rating due to this rising debt ratio. Moody’s will follow the example of S&P Global and Fitch Ratings in 2025. The previous two lowered the country’s rating in 2011 and 2023 respectively.

Crypto analysts, however, find the news very bullish for Bitcoin. After all, if the US debt ratio rises, investors will flee the country, causing the dollar to fall and the Federal Reserve will have no choice but to turn on the money printers again to stimulate the economy. A low dollar is of course very good news for the price of Bitcoin.

We will see this summer whether the latter group is right.