On Thursday, the U.S. House narrowly approved a broad tax reduction bill that President Trump strongly supports. This move has sparked heated debates about economics. Simultaneously, Bitcoin has soared over $110,000, fueled by increased institutional interest, positive regulatory climate, and rising investor trust.
Trump’s Tax Bill: A New Economic Landscape
In an historic move, the U.S. House of Representatives approved President Donald Trump’s wide-ranging tax and budget bill, nicknamed “The One Big Beautiful Bill,” with a close vote of 215 to 214.
Today, the House approved significant, transformative legislation aimed at cutting expenses, permanently lowering taxes for families and businesses, fortifying our borders, boosting American energy independence, reestablishing strength, and improving government efficiency for all Americans, according to House Speaker Mike Johnson (R-Louisiana) following the vote. In contrast, House Democrats chose to vote against these measures.
The bill courts controversy
This proposed legislation seeks approximately $3.8 trillion in tax reductions and intends to prolong the tax cuts introduced by the 2017 Trump administration, which will expire at year’s end. If this bill does not get approved, taxes are expected to increase for the majority of American families come December 31st.
This proposed bill aims to abolish certain taxes on tips and overtime earnings, while introducing new tax deductions for seniors. To compensate for these reductions in revenue, the legislation suggests substantial cuts to social welfare programs like Medicaid and food assistance (SNAP). Additionally, it eliminates clean energy tax incentives.
This legislation sets aside approximately $46.5 billion for finishing the border wall under former President Trump’s plan, and another $5 billion is designated for Customs and Border Protection facilities. Over $6 billion will be used to increase the workforce by hiring additional agents and officers. Notably, this bill marks a new precedent by estimating a fee of $1,000 for asylum applicants.
Bitcoin’s Ascent to Unprecedented Heights
In the midst of significant financial reform efforts within the United States, Bitcoin (BTC) has persistently gained ground, breaking through the $111,000 mark and setting fresh all-time highs daily. Currently, it appears to be in a phase of price exploration.
Bitcoin has experienced significant growth this year, thriving even amidst challenging global economic circumstances. For numerous investors, its unique characteristic as an uncapped asset independent of interest rate fluctuations and central bank turmoil has proven particularly attractive during tumultuous market periods.
Bitcoin is designed as a peer-to-peer transaction network, eliminating the need for intermediaries and third parties in financial exchanges. Its monetary supply is programmatically fixed and stable, ensuring predictability.
In simple terms, Bitcoin’s value has increased by approximately 19.21% so far this year, whereas the S&P 500 index has only slightly risen by about 0.1%.
Regulatory Clarity: A Catalyst for Growth
In 2025, the U.S. government’s forward-thinking approach towards regulating cryptocurrencies increased market trust and reassurance.
On January 23rd, U.S. President Donald Trump enacted his initial executive order, which impacted crypto users and relevant parties within the industry. This executive order is named “Empowering American Ingenuity in ‘Digital Financial Technology'”. The document highlights that the digital asset sector significantly contributes to innovation and economic growth within the U.S., as well as bolstering our nation’s global leadership.
Ensuring both individuals and private businesses can freely utilize open, public blockchain networks legally, without facing any form of harassment or penalties, is one of its main objectives.
The majority of this order focuses on setting up technology and regulations for cryptocurrency within the U.S., with particular emphasis given to the formation of a task force to explore the possibility of a national digital asset reserve, possibly sourced from cryptocurrencies legally confiscated by the Federal Government through their law enforcement actions.
As an analyst, I find myself reflecting on a significant development in the cryptocurrency sector back in February 2025. The Securities and Exchange Commission (SEC) decided to dismiss four key cases against crypto companies. For instance, the allegations against Coinbase regarding unregistered securities brokers were withdrawn. Similarly, an investigation into Robinhood Crypto was closed, and they ceased probing Uniswap Labs. The case against Consensys was effectively resolved after both parties reached a settlement. Furthermore, the SEC temporarily halted its case against Binance to await guidance from the newly established crypto task force.
This change of heart by the SEC suggests a more accommodating regulatory environment and legal system towards digital asset firms in the United States. This positive trend has persisted throughout the first half of the year.
Lately, there’s growing agreement among political parties (both Democrats and Republicans) that stablecoins should be regulated. This consensus is sparking interest in investments from institutions as well as individual investors in this particular market sector.
Looking Ahead: What the Future Holds for Bitcoin
With the U.S. administration increasingly open to digital assets and more institutional investment flowing into cryptocurrencies, Bitcoin’s position in the international financial sphere seems stronger than ever. David McNickel from Brave New Coin noted on May 22nd that the bullish outlook is backed by on-chain data: there’s less selling pressure, as shown by bitcoin moving into exchanges, and increased market liquidity, as demonstrated by new highs in the amount of Tether stablecoin (USDT) stored on these platforms.
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2025-05-23 08:21