Trump signed and passed the "Big and Beautiful" tax and spending bill, raising the U.S. debt ceiling by $500 billion.

On July 4th local time, on American Independence Day, President Donald Trump signed a $3.3 trillion tax and spending bill named "Big and Beautiful" during a celebration ceremony at the White House.

The bill passed in both houses of Congress by a narrow margin, with its core content including significant tax cuts, deep spending reforms, and raising the debt ceiling, which is the largest in U.S. history, by $5 trillion.

The bill permanently extends some key tax cuts from the Trump era and introduces new deductions for tips, overtime pay, and auto loan interest, while also expanding the deduction cap for state and local taxes (SALT) for middle-income families.

However, in order to balance the budget, the bill also significantly cuts Medicaid, food assistance programs, and student loan subsidies. According to the Congressional Budget Office, the fiscal deficit in the United States is expected to increase by $3.3 trillion over the next decade as a result.

The dramatic changes in this fiscal policy have not escaped the close attention of the cryptocurrency market. Analysts warn that the massive new debt could weaken the international status of the dollar and may prompt investors to seek non-sovereign assets like Bitcoin as a means of value storage.

In addition, the inflationary pressure that this spending plan may bring could also accelerate the growth in demand for cryptocurrencies. Shortly after the bill was signed, the price of Bitcoin did react to this, briefly climbing above $108,000.

Despite short-term market fluctuations, investors remain cautious. They are closely monitoring the Federal Reserve's potential policy responses to soaring debt levels, which will have a significant impact on the sustainability of the cryptocurrency rally.

Currently, it seems that Trump's legislative victory has set the tone for a new fiscal era, which could bring structural benefits to traditional financial markets and the digital asset market in the coming months.

The "Big and Beautiful" bill signed by Trump not only significantly raises the U.S. debt ceiling but may also trigger excessive issuance of dollars, inflationary pressures, and a chain reaction in the global financial markets.

So, how will this financial storm evolve? What impact will it have on the global financial markets? We shall wait and see!

#Big and Beautiful Act