Trump's $3.3 TRILLION spending bill just passed Everyone's screaming "Bitcoin to the moon" But they're missing the REAL story Short-term euphoria → long-term DISASTER Here's the timeline + 5 altcoins to watch🧵👇
Yesterday, the US House passed Trump’s “One Big Beautiful Bill” Retail investors are excited - what's next? Most people see just one thing: money printing and a Bitcoin pump But it's not that simple. There’s more to the story
The legislation entails: An increase of $3.3 trillion in national debt $5.1 trillion in tax reductions Elimination of spending limits across multiple areas
The same script we saw in 2021: Government spending → budget deficit → increased bond issuance → Fed steps in → liquidity floods the system This fuels a short-term market rally & investor euphoria But inevitably, inflation rises, rates are hiked & deficits worsen
Growing budget deficit Gov spends more than it earns → deficit • To fill the gap, it sells more treasuries • More spending = more demand = short-term economic boost • Short-term bullish for $BTC, nothing long-term
Higher inflation leads to: Deficit → more money → higher inflation Fed responds by raising interest rates But markets rally before inflation hits
Surging goverment spendings: This is wildly positive for crypto markets Why? It injects momentum into the economy, even if temporarily More government contracts = more business activity = job creation Bitcoin and the broader crypto space are set to thrive
Diminished recession odds Sure, the market looks bubbly, but this legislation meaningfully lowers the risk of a downturn Increased cash flow boosts wages and fuels consumer demand It’s a short-term win for Bitcoin and the broader crypto market
Ultimately, there are 2 possible outcomes: In the short run, it’s a positive catalyst for $BTC Over the long haul, the outlook turns negative
1) Short-term (1,5-2 years) • Increased government spending boosts overall demand • Accelerated GDP growth • Reduced chance of recession • Expansionary monetary policy • Rising business confidence • Job creation through new government contracts and infrastructure projects
Because of this, Bitcoin will probably hit new ATHs, and a global bull market will start It will be similar to 2021, when they cut interest rates and pumped money into the markets Now, they’re not printing money directly, but new money is still entering the economy
2) Long term (2-3 years) • More national debt means bond yields will go up • Businesses and people will face higher interest rates • The government will spend more to pay interest on its debt • Inflation could become bigger • The economy might slow down under this pressure
In this period, expect a deep bear market The Fed will probably raise rates again, which will be the turning point Economic growth will slow a lot, causing people to pull money out of risky assets like $BTC, $ETH & $SOL
My plan hasn’t changed: hold for 6 more months, then exit I’ll keep an eye on Trump’s next economic moves and adjust if needed Stay strong, everyone - we’re on the edge of something big for $BTC Here are 5 alts I expect will outperform $BTC during this cycle 👇
1/ @pudgypenguins - $PENGU Pudgy Penguins NFT collection launched their token. Community-driven meme with massive brand recognition with billions impressions Market cap: $983.6M Price: $0.015 PENGU is a cultural item. When NFT communities unite behind tokens, magic happens
2/ @HyperliquidX - $HYPE #1 no-kyc DEX with native token for trading. Built for professional traders demanding speed and low fees Market cap: $13B Price: $39 HYPE is what happens when you build a DEX that works better than CEXs
3/ @tao_net - $TAO Decentralized AI network where machine intelligence meets blockchain. Miners rewarded for contributing computational power Market cap: $2.8B Price: $322 $TAO is Bitcoin mining for AI. As artificial intelligence explodes, holders control the infrastructure
4/ @Ripple - $XRP Cross-border payment solution for banks. Enables fast, cheap international transfers without banking delays Market cap: $130B Price: $2.22 $XRP won the SEC battle and banks are taking notice. While crypto argues, Ripple moves trillions for institutions
5/ @OndoFinance - $ONDO Real-world asset tokenization platform bringing traditional finance on-chain. Bridges TradFi and DeFi Market cap: $2.45B Price: $0.77 $ONDO is tokenizing the financial system. They bring REAL assets on-chain
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