Senator Lindsey Graham is preparing to introduce legislation aimed at preserving core elements of former President Trump’s fiscal policies.
This legislative push could potentially increase the U.S. deficit by an estimated $2.4 trillion to $3 trillion.
Bitcoin (BTC) has demonstrated significant price appreciation recently, trading near $109,267.94 and surging 32.41% over the preceding 90 days.
This upward momentum reflects investor optimism potentially linked to anticipated shifts in fiscal policy.
Senator Graham’s phased approach seeks to navigate congressional approval while maintaining key fiscal priorities.
Market participants are closely monitoring the potential macroeconomic impacts of these proposals.
Historical precedents, notably the 2017 U.S. tax reform, suggest fiscal policy adjustments can bolster investor confidence in risk assets like cryptocurrencies.
However, legislative uncertainty surrounding the bills could also introduce market volatility.
The scale of the potential deficit impact raises significant questions regarding long-term fiscal sustainability.
Concerns focus on potential implications for inflation and interest rates, factors known to influence both traditional financial markets and digital assets like Bitcoin.