- The U.S. will increase its national debt ceiling by $5 trillion, thus overshadowing Doge savings of $160 billion.
- The global money supply will rise exponentially in the coming quarters and inherently increase cash inflow to Bitcoin.
- BTC price has been trading at a crucial crossroads that could either lead to a capitulation below $100k or towards a new ATH.
The United States celebrated its Independence Day with President Donald Trump signing into law his signature tax cut and spending bill. The One Big Beautiful Bill Act narrowly passed through Congress, a move that divided the two most influential individuals in the crypto industry; Elon Musk and President Trump.
The Big Beautiful Bill received a share of opposition for its spending clauses. Notably, the bill sets a $5 trillion debt ceiling increase, thus allowing the U.S. Treasury to borrow beyond its January 2025 reinstated limit of approximately $36.1 trillion.
“What good is Doge saving $160 billion when this bill increases the debt ceiling by $5 trillion? It makes a mockery of the work,” Musk recently noted.
Bitcoin Emerges as a Better Alternative
The signature tax cut and spending bill will increase the money supply in the coming quarters. Already, the global money supply has been rising exponentially in the past few months, resulting in increased cash flow to the Bitcoin market.
The One Big Beautiful Bill Act will weaken the U.S. dollar against other major currencies led by EUR, JPY, and eventually BTC. According to market data from TradingView, the U.S. Dollar Index (DXY) has declined 11.79% since President Trump took office earlier in 2025 to date.
The investors’ sentiment has shifted to risk-on behavior to hedge against an imminent increase in global money supply. With the ongoing Middle East ceasefire, which was brokered by President Trump, Bitcoin will continue to attract more capital, especially from institutional investors as observed in the spot BTC ETFs.
Furthermore, Bitcoin has a finite supply of 21 million, and the pro-crypto regulations in the United States have increased investors’ confidence in the nascent digital global financial instrument.
Midterm Expectations
BTC price has experienced a psychological resistance level around $109,396, primarily fueled by notable leveraged short traders amid fading speculative appetite. After closing the past two days below $110k, the flagship coin signaled a falling trend with a midterm target of about $100k.
The bearish sentiment is bolstered by the declining daily histograms on the MACD indicator amid falling divergence of the Relative Strength Index (RSI).
Related: ‘Savers Are Losers’: Kiyosaki’s Case for Buying a Bitcoin Dip
The midterm bearish sentiment will be invalidated if BTC price consistently closes above $110k in the coming days.
Considering the One Big Beautiful Bill Act, BTC price is well positioned to experience a parabolic rally in the coming months.
Related: Hayes’s Warning Shot: A $90K Bitcoin Dip Before a Wall Street-Fueled Boom
Furthermore, the flagship coin rallied nearly 200 percent in the second half of 2023 through the first quarter of 2024 following the implementation of the Fiscal Responsibility Act that suspended the federal debt limit through January 1, 2025.
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