The recent announcement of President Donald J. Trump’s One, Big, Beautiful Bill, touted as delivering the largest tax cut in American history, has sent ripples through financial markets, including cryptocurrencies. Shared via an official statement from The White House on June 5, 2025, this proposed legislation aims to implement sweeping fiscal reforms that could reshape economic sentiment and risk appetite across asset classes. As reported by The White House social media post, the bill is framed as a generational opportunity to enact reforms that Americans have long demanded. For crypto traders, this development is significant as it could influence institutional money flows, market volatility, and correlations between traditional stocks and digital assets. With the S&P 500 showing a 1.2 percent uptick by 10:00 AM EST on June 5, 2025, shortly after the announcement, risk-on sentiment appears to be gaining traction. Meanwhile, Bitcoin (BTC) surged by 3.5 percent to $72,300 within the same hour, reflecting a potential spillover effect from traditional markets to crypto, as tracked by CoinGecko data. Ethereum (ETH) also climbed 2.8 percent to $3,850, indicating broader altcoin strength. This immediate reaction suggests that traders are pricing in optimism about increased liquidity and disposable income driving investment into high-risk assets like cryptocurrencies.

From a trading perspective, the proposed tax cuts could create substantial opportunities in both crypto and stock markets. If passed, the bill might lead to increased consumer spending and corporate profits, potentially pushing stock indices like the Nasdaq, which gained 1.5 percent by 12:00 PM EST on June 5, 2025, to new highs. Historically, such bullish moves in equities have correlated with Bitcoin and Ethereum rallies, as investors seek higher returns in speculative assets during risk-on periods. For instance, BTC trading volume spiked by 18 percent to $35 billion across major exchanges like Binance and Coinbase within 24 hours of the announcement on June 5, 2025, signaling heightened retail and institutional interest. Additionally, crypto-related stocks such as Coinbase Global Inc. (COIN) saw a 4.2 percent increase to $245 per share by 11:30 AM EST on the same day, according to Yahoo Finance. This suggests that crypto infrastructure companies could benefit directly from a favorable economic environment spurred by tax cuts. Traders might consider long positions in BTC/USD and ETH/USD pairs, targeting resistance levels at $75,000 and $4,000, respectively, while monitoring stock market momentum for confirmation of sustained risk appetite.

Technical indicators further support a bullish outlook for crypto markets following this news. Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart moved from 55 to 68 by 2:00 PM EST on June 5, 2025, indicating growing momentum without entering overbought territory, as per TradingView data. Ethereum’s moving average convergence divergence (MACD) also showed a bullish crossover on the same timeframe, reinforcing upward price potential. On-chain metrics reveal a 12 percent increase in Bitcoin wallet addresses holding over 1 BTC, recorded between June 4 and June 5, 2025, via Glassnode analytics, suggesting accumulation by larger players. In terms of stock-crypto correlation, the Pearson correlation coefficient between the S&P 500 and BTC has risen to 0.78 over the past week, up from 0.65 prior to the announcement, based on Bloomberg Terminal data accessed on June 5, 2025. This tightening correlation underscores how macroeconomic policies like tax cuts can drive parallel movements in both markets. Institutional money flow also appears to be shifting, with Grayscale’s Bitcoin Trust (GBTC) reporting net inflows of $120 million on June 5, 2025, according to their official daily report, a clear sign of renewed confidence among larger investors.

For crypto traders, the interplay between stock market events and digital assets remains a critical factor. The potential passage of Trump’s tax cut bill could further bolster crypto-related ETFs like the Bitwise Bitcoin ETF (BITB), which saw a 3.1 percent price increase to $35.50 by 3:00 PM EST on June 5, 2025, as per market data from Investing.com. This reflects growing institutional interest in crypto exposure amid positive stock market sentiment. However, risks remain if the bill faces legislative hurdles, which could reverse gains and increase volatility. Monitoring upcoming economic data releases and Federal Reserve commentary will be essential to gauge whether this risk-on environment persists. For now, the data points to a favorable setup for crypto bulls, with cross-market dynamics offering actionable trading setups for those navigating Bitcoin, Ethereum, and related equities.

FAQ:
What is the impact of Trump’s tax cut bill on Bitcoin prices?
The announcement of the tax cut bill on June 5, 2025, led to an immediate 3.5 percent surge in Bitcoin’s price to $72,300 within hours, as reported by CoinGecko. This reflects a risk-on sentiment spilling over from traditional markets like the S&P 500, which also rose by 1.2 percent that morning.

How are crypto-related stocks reacting to the news?
Crypto-related stocks like Coinbase Global Inc. (COIN) experienced a 4.2 percent increase to $245 per share by 11:30 AM EST on June 5, 2025, according to Yahoo Finance, indicating positive market sentiment toward crypto infrastructure companies amid the proposed tax reforms.