Trump’s ’Big, Beautiful’ Policy Shift Could Send Bitcoin and Altcoins Soaring

When Washington shakes the money tree, crypto traders catch the falling fruit. The latest fiscal fireworks from the Trump administration—call it inflationary, call it genius—are priming the pump for digital asset rallies.

Dollar Debasement Playbook 101

Massive spending bills historically send investors scrambling for hard assets. This time, the escape hatch leads straight to blockchain. Bitcoin’s fixed supply looks increasingly attractive as fiat printers whir back to life.

Altcoin Season Loading

Smaller cryptocurrencies often outperform when BTC dominance wobbles. Watch for Ethereum to lead the charge as institutional players hedge against both inflation and political uncertainty—because nothing says ’portfolio insurance’ like volatile digital tokens.

The real winner here? Crypto exchanges collecting fees while traditional finance scrambles to explain why their ’stable’ assets keep buying less bread. Some things never change—except the number of zeros on your Bitcoin balance.

Big, beautiful bill to boost Bitcoin and altcoins

First, the bill is expected to increase the U.S. public debt and deficit. The Committee for a Responsible Federal Budget estimates it will raise public debt by $3.3 trillion over the next ten years. It will also push the debt-to-GDP ratio from 100% to 125%, compared to 117% under current law.

The surging debt comes as the U.S. has lost its last triple-A credit rating from Moody’s. S&P Global and Fitch Ratings downgraded the country’s rating in 2011 and 2023, respectively.

Rising risks of a U.S. government default are considered bullish for Bitcoin, which is increasingly viewed as a safe-haven asset. Many Bitcoin analysts, including BlackRock’s Larry Fink, believe that it is digital gold.

In a recent WHITE paperBlackRock noted that Bitcoin was a unique diversifier and that many investors are buying it to hedge against growing U.S. debt.

Analysts cite Bitcoin’s tokenomics, a capped supply of 21 million coins and a halving mechanism that slows its issuance by cutting block rewards every four years.Bitcoin’s falling supply is occurring just as institutional and government demand is rising.

Second, the “big, beautiful bill” could also boost Bitcoin by introducing new tax breaks, increasing the disposable income of many Americans.

More disposable income could lead some people to buy Bitcoin and other altcoins. A notable example occurred during the COVID-19 pandemic when Americans used stimulus checks to purchase Bitcoin.

Additionally, the bill will likely expand the M2 money supply in the U.S. as the Federal Reserve may be forced to print money to fund the growing deficit. Historically, Bitcoin has tracked the M2 money supply, albeit with a lag. Most altcoins then tend to follow Bitcoin’s price movements.

$BTC is perfectly mimicking Global M2 supply with a 90-day offset.

Soon moon. 🚀 pic.twitter.com/baQucC7NeM

Finally, the bill’s tax cuts and deregulation measures could help to offset the impact of Donald Trump’s tariffsand help to reduce recession risks. Falling recession risks WOULD then be bullish for Bitcoin and other altcoins.