Trump’s "Big Beautiful Bill" Passed: Bitcoin May Dip to $90K Before Surging, Says Arthur Hayes
In a recent development, the U.S. House of Representatives passed President Donald Trump’s much-discussed "Big Beautiful Bill," with the Senate having cleared it previously. The bill, which aims to cut taxes and raise the federal debt ceiling, is expected to be signed into law by Trump on Independence Day, July 4, 2025. This legislative move carries significant implications for the cryptocurrency market, particularly Bitcoin, according to crypto entrepreneur Arthur Hayes, co-founder and former CEO of BitMEX.
Bitcoin Faces Short-Term Volatility
Bitcoin recently broke past the $110,000 threshold, an indicator of strength that hints at the cryptocurrency’s approach toward new all-time highs. At the time of reporting, Bitcoin (BTC) traded around $108,109 per coin, having gained over 2% in the past week and hovering close to its May 2025 peak of $111,814. Despite the bullish momentum, Hayes warns that the passage of Trump’s bill could inject short-term volatility into the market. In a blog post titled "Quid Pro Stablecoin," he explains that increased government borrowing to refill the U.S. Treasury’s General Account might trigger a liquidity drain from broader financial markets. This scenario could temporarily depress asset prices, including Bitcoin, causing a potential pullback to around $90,000 before resuming an upward trajectory.
He urges investors to "proceed with caution," signaling that although the bull market remains intact, an interruption may occur as the market digests the macroeconomic changes brought on by the new legislation.
Stablecoins and Fiscal Policy: A New Dynamic
Hayes also highlights the U.S. government’s growing interest in stablecoins—not primarily as a payment innovation but as a fiscal tool to help manage national debt. Stablecoins are digital tokens usually pegged to stable assets like the U.S. dollar, and their regulation has been a topic of intense policy debate.
Last month, the Senate passed the GENIUS Act, creating regulatory frameworks that could restrict private companies’ ability to issue stablecoins. Hayes argues that this legislation might steer major banks toward adopting stablecoins to purchase U.S. treasury bills, effectively using digital currencies to reduce the federal deficit.
Long-Term Crypto Outlook Remains Bullish
Despite potential short-term dips, Hayes maintains a strongly bullish stance on Bitcoin’s long-term potential. Back in May 2025, he projected that Bitcoin could reach the $1 million mark by 2028, fueled by investor shifts out of traditional government bonds into alternative assets like cryptocurrencies.
His view aligns with broader market optimism that U.S. monetary policies, including the Federal Reserve’s expansive money-printing measures, will ultimately underpin significant growth in the cryptocurrency sector.
Market Snapshot (July 3, 2025):
- Bitcoin (BTC): $108,109 (-1.30%)
- Ethereum (ETH): $2,516 (-2.92%)
- Ripple (XRP): $2.22 (-1.77%)
- Binance Coin (BNB): $654.56 (-1.34%)
- Solana (SOL): $148.18 (-2.77%)
Note: Prices as reported by Decrypt and CoinGecko.
As President Trump prepares to enact the "Big Beautiful Bill," market participants, especially in the crypto space, are bracing for short-term fluctuations. Yet, the consolidated regulatory efforts around stablecoins and Hayes’ bullish forecast suggest a transformative year ahead for cryptocurrencies, with Bitcoin poised to break through new milestones beyond the temporary volatility induced by government fiscal maneuvers.
Reporting by Mat Di Salvo for Decrypt.