According to Compounding Quality on Twitter, fiscal policy refers to how a government leverages taxes and spending to influence economic conditions, which can directly affect unemployment and inflation levels (source: Compounding Quality, June 9, 2025). For crypto traders, changes in fiscal policy can signal shifts in liquidity and market sentiment, as government spending or tightening can alter the risk appetite for digital assets. For example, expansive fiscal measures often lead to increased liquidity, potentially boosting cryptocurrency prices, while austerity policies may tighten market conditions and pressure crypto valuations.

According to Milk Road (@MilkRoadDaily), cryptocurrency traders do not have to pay taxes if they do not realize profits from their trades. This emphasizes the importance of understanding tax obligations as they relate to trading gains and losses. Adhering to tax regulations is crucial for traders to avoid potential legal issues.

According to André Dragosch, PhD, Bitcoin serves as a critical hedge against the inevitable realities of death, taxes, and continuous money printing by governments. This perspective underscores Bitcoin's value proposition in preserving wealth against inflationary pressures.