Trump's Law: Starting the Bitcoin Bull Market?

Trump's Law: Starting the Bitcoin Bull Market?

On July 5, 2025, President Trump's controversial One Big Beautiful Bill was passed by the Senate. This move could have far-reaching effects on the economy, especially with regard to the Bitcoin market. Analysts agree that the law's economic impact could potentially boost demand for digital currencies.

Although the new law does not contain any specific regulations for cryptocurrencies, it does provide for significant tax cuts and depreciation that could particularly benefit Bitcoin miners. These economic reliefs can increase the profitability of Bitcoin mining and thus increase the overall demand for Bitcoin. Analysts at Santiment see a Bitcoin price of $107,000 as a potentially attractive entry point.

Economic stimulus and monetary policy

The proposed tax breaks and the possibility that Treasury spending will increase could put pressure on the Federal Reserve to ease monetary policy. Nic Puckrin of CoinBureau expressed concerns that the law could lead to the faster devaluation of the US dollar. In fact, the US Dollar Index (DXY) has posted one of its worst starts to the year since 1973. Puckrin increasingly sees Bitcoin as a suitable hedge against fiat currencies.

A possible interest rate cut that could bring the interest rate back to 1% could flood markets with liquidity and usher in a Bitcoin bull market. The macroeconomic environment therefore appears to be increasingly favorable for cryptocurrencies, even if Senator Cynthia Lummis's bill-barred crypto tax amendment proposal is unlikely to be one of the direct measures that could support Bitcoin.

Market analysis and further developments

Combined with pending legislation, uncertainty over fiscal policy and ongoing deficit spending has renewed interest in Bitcoin as a non-sovereign asset. Historical trends show that such economic conditions favor non-sovereign assets like Bitcoin, which can respond more quickly to global liquidity movements.

The bill, which was passed by the House of Representatives on July 3, 2025, calls for new borrowing of up to $5 trillion and also includes cuts to Medicaid and food assistance. The market is expected to shift its focus from political aspects to liquidity, which could benefit Bitcoin demand.

The role of the Bitcoin market could also change thanks to reduced clean energy subsidies, potentially increasing mining profits in energy-rich states. Miners in states like Texas and Wyoming could benefit from cheaper electricity prices. However, the main risk is that the altcoin market remains inconsistent; While infrastructure tokens show potential, speculative investments must expect increased volatility.

Given these developments, analysts are watching markets closely, particularly with regard to fluctuations in Treasury yields and investor reaction to the new fiscal framework. The market dynamics therefore remain exciting, and interest in Bitcoin could increase sharply in the coming months.