Trump's "Great and Beautiful Act" raises the debt ceiling to $5 trillion, is it beneficial for Bitcoin? Historical data tells you.

The U.S. Senate passed Trump's Big America bill by one vote on Tuesday, trying to pass the House of Representatives this week. Some people in the market are shouting about Bitcoin, but history and interest rate signals reveal a more complex outlook. (Synopsis: The US "small non-farmer" ADP report is out!) In June, the position fell by 33,000, and the bitcoin stood up to $108,000) (Background supplement: Musk announced: The brain-computer interface Neuralink "human brain implantation chip" surgery was successful! The first patient recovered well) The U.S. Senate on Tuesday passed Trump's "One Big Beautiful Bill," which wants to raise the U.S. debt ceiling to $5 trillion. At present, Trump is trying his best to win the support of the Republican opposition to pass the bill before July 4, the national day of the United States. In addition to the bill's impact on the tax system and industrial development of all classes in the United States, many Bitcoin proponents believe that the move to raise debt could propel Bitcoin to a new high in 2025. However, historical data shows that there is no clear positive correlation between the price of bitcoin and the US debt ceiling adjustment. Raising debt doesn't necessarily mean long-term gains According to Cointelegraph analysis, the US Congressional Budget Office estimates that the passage of the law will widen the US deficit by another $3.3 trillion in the next decade. The market sees this massive borrowing as a signal of "dollar depreciation", which is theoretically positive for the Bitcoin (BTC). However, historically, charts in the six months following the increase or suspension of the debt ceiling in the United States show that except for the positive return after the June 2023 increase, in most cases, bitcoin first fell and then rose, or even reversed directly. U.S. Treasury Secretary Scott Bessent argued that the bill would help "manage debt," but NorthmanTrader founder Sven Henrich warned that the move could exacerbate inflation. Source: Cointelegraph Investors should keep an eye on three major signals But basically, raising the debt ceiling is only a prologue, and what really determines the direction of bitcoin is still the Fed policy, the dollar index and long-term yields. If the Fed turns to easing, the dollar continues to weaken and liquidity recovers, funds may return to gold, stocks and bitcoin; Conversely, if interest rates remain high for a long time, risky assets may come under further pressure. The debt ceiling tug-of-war provides a magnifying glass, amplifying market fears of inflation and interest rates, as well as the tension of Bitcoin's "digital gold" narrative. However, in the end, the bitcoin market will still return to the overall policy and capital cost trade-off, rather than the passage of a single bill. Related reports Musk's Neuralink "brain-computer interface" won another $43 million investment led by Peter Thiel, the godfather of Silicon Valley venture capital, Musk's "brain implantation chip" experiment to cut the skull! Thousands of people still sign up for Neuralink brain-computer implantation Musk's Neuralink "implanted brain chip" was approved for human experiments, and brain-computer interfaces became a reality? 〈Trump's "Big America Act" raises the debt ceiling to $5 trillion, which is beneficial to Bitcoin? Historical data tells you that this article was first published in BlockTempo "Dynamic Trend - The Most Influential Blockchain News Media".