US Treasury Policy Shift and Pending Major Deals Signal Potential Ripple Effects for Crypto Market

The US Treasury, led by Secretary Scott Bessent, has signaled a major policy shift from austerity toward strategies focusing on economic expansion and increased federal spending. The newly passed House bill is set to boost the federal deficit by nearly $3 trillion over the next decade, aiming to grow the economy faster than debt. Bessent also revealed that several significant economic deals are expected in the coming weeks, possibly involving mergers, infrastructure, international agreements, or regulatory changes—though specific details remain undisclosed. These developments are critical for crypto traders: continued high Treasury issuance, possible lower real yields, and financial repression may drive demand for alternative assets like cryptocurrencies. Market sentiment is likely to respond swiftly to these announcements, as positive deals (such as stimulus or supportive policies) could raise risk appetite and push crypto prices higher, whereas signals of tighter regulation or fiscal tightening could exert downward pressure. Historical trends suggest such macro-level US government changes spur volatility and repricing not just in traditional markets but also in digital assets like Bitcoin. Crypto traders should closely monitor upcoming Treasury announcements and adjust portfolios to manage risk and capitalize on opportunities.