According to Fox News, the US Senate is currently deliberating former President Trump's 'big, beautiful bill,' while a policy group has supported the Congressional Budget Office's projection of a $3 trillion increase in national debt over the next decade (Fox News, June 5, 2025). This significant fiscal expansion is expected to impact the cryptocurrency market by increasing investor interest in digital assets as a hedge against potential dollar devaluation and inflation. Traders are closely monitoring legislative outcomes, as rising US debt levels historically correlate with surges in Bitcoin and stablecoin volumes, reflecting growing demand for decentralized alternatives (Fox News, 2025).

According to The Kobeissi Letter, the US Congressional Budget Office (CBO) projects that the US Debt-to-GDP ratio could soar to 220% by 2055 if the 2017 tax reductions are extended indefinitely, which is 64 percentage points above the baseline projection (source: The Kobeissi Letter, May 21, 2025). This trajectory signals significant fiscal instability and could undermine confidence in US government bonds, increasing demand for alternative assets like Bitcoin and other cryptocurrencies among global investors. Traders should monitor macroeconomic policy changes closely, as elevated debt levels historically drive shifts in capital flows toward non-sovereign stores of value, potentially increasing crypto market volatility and trading opportunities.