Bitcoin held steady above $107,000 even after the US Senate passed a massive $4.5 trillion spending bill. This “One Big Beautiful Bill,” as some called it, squeaked through with a 51-50 vote, with the Vice President casting the deciding ballot.
The Bill’s Impact (or Lack Thereof)
The bill includes big tax cuts, more border security money, and cuts to programs like Medicaid and SNAP. Interestingly, there was no specific mention of crypto in the bill, although some last-minute attempts to add crypto tax benefits failed.
Bitcoin’s Rollercoaster Ride
Before the vote, Bitcoin dipped to around $106,344 as traders waited to see what would happen. But once the bill passed, Bitcoin quickly bounced back, rising above $107,800. That’s a roughly $1,400 swing in a single day – about 1.3%! Some traders took advantage of the dip, selling low and buying back higher. Others just watched and waited for the next big news.
Other Cryptos and Market Reactions
Other cryptocurrencies weren’t as lucky. Ethereum only dipped slightly (0.3%), XRP fell by 0.7%, but Solana took a bigger hit, dropping as much as 6%. In total, over $219 million in crypto positions were liquidated, with about $60 million of that being Bitcoin.
Crypto Stocks Celebrate
The good news wasn’t limited to Bitcoin. Stocks related to crypto also saw gains. MicroStrategy (now Strategy) went up around 3.2%, and Coinbase jumped 2.3%. These increases outperformed the overall Nasdaq gains.
What’s Next?
The bill now heads back to the House for final approval before potentially reaching the President’s desk before July 4th. The crypto market will be keeping a close eye on upcoming inflation reports and any moves by the Federal Reserve. Further interest rate hikes could put pressure on crypto prices. However, the Senate vote also showed that Bitcoin and other cryptos can react significantly to major political events – sometimes in unexpected ways.
