Trump's Big Beautiful Bill: Good or Bad for Bitcoin?

There has been a significant increase in crowd conversations about cryptocurrency after the Senate passed President Donald Trump's "Big Beautiful Bill," with Vice President JD Vance breaking the 50-50 tie. Santiment has reported a significant increase in social volume for the words "big," "beautiful," and "bill." Although the law itself does not provide any direct cryptocurrency provisions, the blockchain analysis platform notes that traders seem to be positioning for potential spillover effects. These include widespread tax cuts and consumer spending incentives that could boost "risk-on" sentiment favorable to Bitcoin and altcoins. Bill's Depreciation Discounts Attract Miners The proposal to refund 100% of depreciation on bonuses is another aspect that has not been fully reported, which Santiment marked as likely to increase the price for Bitcoin mining activities. This is because it allows companies to immediately depreciate their mining equipment purchases. Such a move is expected to encourage rapid ASIC deployment and potentially increase Bitcoin's hash rate. Historically, a higher hash rate corresponds with a price increase cycle, especially during monetary expansion. Therefore, the report notes that if a more accommodative fiscal policy intersects with an increase in M2 supply, cryptocurrency assets may see upward momentum. Despite the market's optimism, Santiment has highlighted the disappointment after the failure to include the amendment proposed by Senator Cynthia Lummis. This amendment aimed to address the complexities surrounding staking taxes, mining, and microtransactions, a shortcoming that many in the industry have pushed for over the weekend. Overall, social sentiment remains optimistic. Traders mainly anticipate potential indirect benefits from cryptocurrency investments as tax cuts on overtime and tips help bring more disposable income into circulation. However, some others remain cautious as the deep cuts to healthcare and green energy spending in the bill have caused concern in the market, even leading to tensions between Trump and Tesla CEO Elon Musk. Elon Musk has publicly criticized the bill and hinted at political rearrangements. When observing social reactions to this conflict, Santiment noted that the price of Bitcoin slightly decreased, reflecting the decline of Tesla. This reflects the ongoing correlation between Tesla's stock volatility and the cryptocurrency market's response during significant political events. Additionally, Dogecoin has entered the conversation as traders reference Musk's prior humorous support through the so-called DOGE department. His current remarks warn that the legislation could harm companies focused on the future, further increasing volatility in sentiment. The Models of "Sell the Rumor, Buy the News" Appear Social data analysis shows that although the Senate's passage of the bill has not yet resulted in a significant price increase for Bitcoin or major altcoins, crowd sentiment has shifted to cautiously optimistic, in line with the "sell the rumor, buy the news" behavior often seen in the cryptocurrency market. The legislative process currently underway is expected to influence the sentiment of the cryptocurrency market depending on the developments in political negotiations, particularly surrounding the potential impact on financial spending, the Treasury market, and the liquidity actions of the Federal Reserve. Although the Senate version does not mention the direct victory of cryptocurrencies, the broader impacts of consumer liquidity, policy volatility, and financial-monetary interaction will still be key points for traders looking to position themselves around the "Big Beautiful Bill" story in the coming weeks.