After clearing the House of Representatives with a 218-214 vote, the “One Big Beautiful Bill,” as it is formally known, lies on U.S President Donald Trump’s desk for one last signature before it is enacted into law.
The bill, which is designed to achieve multiple campaign promises in one legislative sweep, seeks to raise the SALT (State and Local Tax) deduction cap from $10,000 → $40,000, eliminate federal taxes on tips and overtime pay, cut medicaid rates, increase funding for the military, and the border patrol, etc. Although the bill seems to have no direct correlation to crypto prices to the common man, however, crypto entrepreneurs and other web3 leaders think it would dump the prices.
So, why will the crypto markets crash?
Arthur Hayes, the co-founder and former chief of crypto exchange BitMEX, thinks that the bill, with its tax rates, will increase the debt ceiling, and the U.S. Treasury will have to borrow money to absorb the cuts. When the treasury borrows money, it will drain the liquidity in the market. As such, Hayes thinks that the bull market might be delayed, and Bitcoin might even crash to $90K. However, he expects Bitcoin to push up afterwards.
