Bitcoin Predicted to Benefit from New Tax Proposal Adding $2.5 Trillion to Deficit

Spencer Hakimian, founder of Tolou Capital Management, has estimated that the massive tax-cut bill that was released by the Republicans earlier today is set to add $2.5 trillion to the deficit.

The bill is supposed to cut spending by $1.5 trillion while allowing for a whopping $4 trillion worth of tax cuts.

Hakimian, who has emerged as one of the most authoritative voices within the finance community amid the recent economic turmoil, claims that the massive increase in deficit will be amazing for Bitcoin (BTC) and gold.

The loose fiscal policy is also expected to positively affect US stocks.

At the same time, the expansion of the deficit will obviously be "terrible" for bonds since the US government will have to issue more of them in order to raise funds.

Earlier today, Fox Business reporter Charles Gasparino stated that the notion that the tariffs could pay down the deficit was "off the table," given that the US and China have reached an agreement.

The Bitcoin price reached a new multi-month peak of $105,503 after the news about the agreement broke out. However, it is now down by more than 2%.

Wyoming Senator Cynthia Lummis previously claimed that Bitcoin could help solve the national debt problem in the US.

Former BitMEX CEO Arthur Hayes recently opined that the U.S. government is unlikely to actually buy Bitcoin due to concerns about fiscal debt.