Bitcoin-market watchers woke to political fireworks as the United States Senate approved President Donald Trump’s multitrillion-dollar tax-and-spending package, the “One Big Beautiful Bill Act,” with Vice-President J.D. Vance casting the tie-breaking vote to seal a 51–50 victory. Only three Republicans—Susan Collins of Maine, Rand Paul of Kentucky and Thom Tillis of North Carolina—joined Democrats in opposition. The measure now returns to a narrowly divided House, where fiscal-hawk conservatives have vowed to reopen fights over the bill’s $3-trillion deficit impact and Medicaid cuts.
Within minutes of the gavel, crypto-focused social analytics platforms lit up. Santiment reported a surge in references to the words “big,” “beautiful,” and “bill,” dwarfing bearish keywords by a factor of three, an unusual imbalance that historically coincides with short-term upside in digital-asset prices. “Traders are making mainly bullish proclamations after this next step has been checked off the list,” analyst Brian Q wrote in a note published barely an hour after the vote.
The Senate text contains no direct regulatory relief for digital assets. Senator Cynthia Lummis’ amendment — which would have deferred tax on staking and mining rewards until sale and exempted sub-$300 retail payments — never reached the floor. “We lost on getting the Bitcoin & crypto tax amendment in BBB. It sucks. This is one of the top sets of issues we’ve been advocating for… maybe we get it in a new bill or we take another swing in next years budget… but we’ll get it done,” BTC Inc. CEO David Bailey wrote via X.
Why Bitcoin Bulls Can Still Rejoice
Still, macro-sensitive investors zeroed in on two provisions with clear implications for the sector: First, there’s the reinstatement of 100 percent bonus depreciation. Firms may now expense the full cost of new hardware in year one rather than amortizing it. For a mining operator acquiring $10 million in ASIC rigs, the immediate write-off cuts the effective after-tax cost by roughly one-third, sharpening incentives to deploy capital quickly and pushing projected network hashrate higher.
Second, the permanent elimination of federal taxes on tips and overtime pay. While politically framed as middle-class relief, the provision amounts to an estimated $280 billion of disposable income over ten years, according to the Washington Post, potentially supporting risk-asset allocation at the retail margin.
Bitcoin initially slipped 1.4 percent to $105,800, retracing part of Tuesday’s record monthly close near $107,200 before stabilising just above $106,000.
The short-lived dip drew astonishment from long-time analyst Vijay Boyapati, who wrote on X, “Bitcoin falling on the BBB passing the Senate is perhaps the most irrational market reaction since the Bitcoin Covid crash to $3,000, just as the money printer went into overdrive in 2020.”
Other voices focused on fiscal risk: dVick called the bill “another nail in the dollar’s coffin,” adding: “The devaluation has been accellerated. If you’re not in Bitcoin, and don’t get in soon, I expect those are decisions you’ll soon regret.”
Balaji Srinivasan, former chief technology officer of Coinbase, added: “The US is broke. The real debt is $175T+. And @elonmusk is 100% correct on the numbers. But the difficult step is the logical conclusion. There is no fix. It’s a writeoff. A national bankruptcy. And the default will be in the form of money printing.”
For Bitcoin and crypto participants, the Senate vote is less an endpoint than a macro signal. Should the final package survive intact, the combination of fresh consumer cash, generous capital-investment write-offs and a potentially more accommodative Fed would replicate many of the monetary conditions that powered Bitcoin’s 2020-21 run. In Boyapati’s words, “the money printer” may not be at full throttle yet, but the gears just started whirring.
At press time, BTC traded at $106,454.
Featured image created with DALL.E, chart from TradingView.com
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