Budget Bill Boosts Liquidity as Bitcoin Eyes $90K Pullback
The U.S. House approved the $1.7 trillion “Big Beautiful Bill” budget bill, ending shutdown risks, locking in border spending and extending tax cuts. Pro-crypto Senator Cynthia Lummis saw her mining and staking tax amendments rejected, leaving digital-asset taxation unaddressed. Economists warn the package could add $3–4 trillion to the deficit over a decade, injecting fresh liquidity into financial markets.
Bitcoin prices rallied toward $110,000 (+0.24%) and overall crypto market capitalization rose 0.3%. Yet former BitMEX CEO Arthur Hayes warns that reduced fiscal uncertainty and lower market volatility may trigger a corrective pullback. He forecasts Bitcoin could drop back to around $90,000 as traders shift to a risk-off stance.
Traders should prepare for this short-term dip before any renewed upswing. With broader stimulus debates delayed, future macro drivers of cryptocurrency demand remain in flux. The budget bill’s liquidity boost underlines the impact of fiscal stimulus on risk assets, though crypto-specific policy remains unresolved.
Bearish
The budget bill’s passage injected significant liquidity into markets, driving an initial Bitcoin rally toward $110,000. However, the absence of crypto-specific measures and the removal of fiscal uncertainty may reduce volatility, prompting traders to de-risk. Arthur Hayes’ forecast of a pullback to $90,000 underscores a likely short-term correction as investors adopt a risk-off stance. While fiscal stimulus often underpins long-term upside for risk assets, the immediate outlook for Bitcoin is bearish until broader stimulus debates and digital-asset tax policies are clarified.