The optimism surrounding Bitcoin's immediate future stems from a historical precedent. In December 2020, then-President Trump signed a comparable stimulus package, which led to a remarkable 54.4% rally in Bitcoin's value over just 12 days. Proponents argue that the current bill, encompassing extensive tax cuts, defense spending, and a hike in the debt ceiling, is likely to reignite inflation fears. Historically, such fears prompt investors to seek refuge in assets perceived as hedges against currency debasement, with Bitcoin increasingly filling this role as a digital store of value.
Crypto commentators, including prominent figure Crypto Rover, are highlighting the strong correlation between large-scale government spending and Bitcoin's performance. The expectation is that the sheer volume of new money entering the economy will dilute the purchasing power of the dollar, making scarce assets like Bitcoin more attractive. With President Trump set to sign the bill on July 4, the cryptocurrency community is eagerly anticipating a potential "Trump Pump" that could replicate or even exceed the 2020 rally, further solidifying Bitcoin's position as a macroeconomic hedge in an era of expansive fiscal policies.