Key Takeaways
BTC crossed $111,500, following President Donald Trump’s much awaited tax-cut bill, known as the “One Big, Beautiful Bill.” The Bill has been approved by U.S. House Rules Committee and it has sparked a debate on how it will change the federal reserve deficit concerns.
US Congressional Budget Office believed that this tax cut could increase the federal deficit by $1.5 trillion. However, it is important to know that the US has the highest debt ~ $36 T.
The Tax Cut Bill will affect the taxes levied on on tips, overtime pay, and Social Security benefits and spend more on border security and national security in general. It is important to note that Trump’s administration has been working on deporting illegal immigrant in the states.
What is Trump’s Tax Cut Bill?
The U.S. House Rules Committee gave the green light to President Donald Trump’s multitrillion-dollar tax-cut proposal on Thursday, marking a key milestone for the controversial legislation, according to Reuters.
Dubbed the “big, beautiful bill,” the proposal is now one step closer to becoming law as it moves through a politically charged environment.
At the same time, Senate Republicans pulled an all-nighter on April 5 to pass their own version of the sweeping tax and spending overhaul. The measure narrowly cleared the Senate with a 51-48 vote, mostly along party lines, despite vocal pushback from two high-profile GOP senators and united Democratic opposition.
How Did Markets React to Trump’s Tax Cut Bill?
Despite the legislative progress, U.S. stocks experienced a downturn, with the Dow Jones Industrial Average dropping 1.47%, the S&P 500 falling 0.99%, and the Nasdaq declining 0.75%. Health care stocks were particularly affected, with UnitedHealth falling 4.5% amid a scandal involving secret nursing home bonuses.
As of May 22, 2025, Bitcoin (BTC) continues to dominate the crypto market, trading at $110,402.99 with a market capitalization of $2.19 trillion, according to CoinMarketCap. The leading cryptocurrency has surged 3.46% in the past 24 hours and posted a strong 25.22% gain over the last month—clear signs of growing investor confidence and bullish momentum.
The surge in Bitcoin’s price reflects investor sentiment favoring assets perceived as hedges against potential inflation and fiscal instability. The legislative developments, coupled with concerns over increased federal deficits, have influenced market dynamics, leading to a shift towards cryptocurrencies
Key Provisions of The Tax Cut Bill
The newly advanced tax bill, often referred to as Trump’s “big, beautiful bill,” includes sweeping measures aimed at overhauling the U.S. tax code. It proposes a permanent extension of the 2017 tax cuts, elimination of federal taxes on tips, overtime pay, and Social Security benefits, and increased funding for defense and border security. The bill also seeks to roll back several Biden-era green energy tax credits and impose stricter work requirements for Medicaid recipients. While supporters tout it as a pro-growth plan, critics warn it could add over $2.5 trillion to the national debt over the next decade.
The bill also outlines $350 billion in new government spending, with around $150 billion directed to the Pentagon. This includes funding for the proposed “Golden Dome” missile defense system. The remaining funds are earmarked for large-scale deportation initiatives and enhanced border security efforts.
Source: Time
- Bitcoin Surges Amid Approval of Trump’s Tax Cut Bill – May 22, 2025
- What is Bitcoin’s BIP – 177? – May 21, 2025
- Coinbase Takes a Clever Dig At Fed In Their New Bitcoin Ad – May 6, 2025