House Passes Trump’s Tax Cut and Spending Bill

Donald Trump’s tax cut and spending bill passed in the U.S. House on July 4.

The legislation could impact markets, with possible volatility for major assets like BTC and ETH.

House Approves $5 Trillion Debt Ceiling Increase

The U.S. House of Representatives passed Donald Trump’s tax cut and spending bill on July 4. The legislation, known as the “One Big Beautiful Bill Act,” aims to extend Trump’s 2017 tax cuts and introduce new relief measures, including ending taxes on tips and overtime. Former President Trump expressed his enthusiasm, saying, “We are delivering the One Big Beautiful Bill Act to the American people, which will not only extend the 2017 tax cuts but also provide critical tax relief to hard-working citizens.” House Speaker Mike Johnson secured essential votes for its passage.

Changes to taxation policies are at the heart of this legislation, altering the fiscal landscape by expanding tax cuts and initiating new spending for defense and immigration. These changes are linked to a House Approves $5 Trillion Debt Ceiling Increase, which may shift the focus of lawmakers toward budgetary adjustments in other areas.

Immediate market reactions have been muted with no direct statements from major exchanges or on-chain data. However, historical patterns suggest increased volatility in BTC and ETH owing to global macroeconomic conditions. The broader economic implications are yet to be analyzed as official remarks are expected from leading Republicans and the White House.

2017 Tax Cuts: Echoes in Crypto Markets

Did you know? Trump’s initial 2017 tax cuts contributed to a late 2017 crypto bull run, boosting capital and market confidence post-enactment.

Bitcoin (Ticker: BTC) currently trades at $109,599.88 with a market capitalization of $2.18 trillion, controlling 64.45% market dominance, according to CoinMarketCap as of July 3, 2025. Its price shows varied fluctuations with a 24-hour change of 0.13% and a broader 30-day increase of 3.39%.

The Coincu research team notes that financial regulations may tighten, with spending cuts offsetting the debt ceiling rise. Historical trends show fiscal expansion could weaken the USD, potentially boosting BTC as an inflation hedge, while technological implications for DeFi and Ethereum could emerge.