Bitcoin (BTC) institutional adoption sees a new wave of corporate investments

US President Donald Trump is pushing forward the “One Big Beautiful Bill Act,” which he says would cut as much as $1.6 trillion in federal spending.

US President Donald Trump is pushing forward the “One Big Beautiful Bill Act,” which he says would cut as much as $1.6 trillion in federal spending, in a move that could benefit Bitcoin (BTC) amid more global uncertainty.

Trump is aiming to slash $1.5 trillion in spending and raise $1 trillion in revenue with the bill, which he says would grow the economy “like it has never grown before.”

“The great, big, beautiful bill will grow the economy like it has never grown before, putting our country on the right track, plus!” Trump wrote in a Truth Social post on Thursday.

The proposal comes as efforts to finalize a trade agreement between the United States and China are ongoing, which Trump on Wednesday said was “subject to final approval” by both governments.

Elon Musk criticized the spending bill in a June 5 X post, warning that it would “increase the deficit to $2.5 trillion.”

A growing US deficit may lead to an increase in the money supply through quantitative easing (QE), which refers to central banks buying bonds and pumping money into the economy to encourage spending through stagnating economic conditions.

Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, has predicted Bitcoin could climb to $250,000 if the US Federal Reserve pivots to QE, due to growing inflationary pressures from trade tariffs.

More tariff-related uncertainty may benefit Bitcoin’s (BTC) growing valuation, according to Lucas Outumuro, vice president of institutional DeFi at Sentora (previously IntoTheBlock).

“Bitcoin has been benefiting from this deglobalization that Trump has been bringing forth,” Outumuro said during the Chain Reaction daily X spaces show on June 5.

“The tariffs created a lot of animosity between international partnerships and people, prompting large entities and nation states to question whether their wealth was safe in the US economy.”

Trump unveiled his reciprocal import tariffs on April 2, measures aimed at reducing the country’s estimated trade deficit of $1.2 trillion in goods and boosting domestic manufacturing.

The tariffs sparked trade disputes with China and the European Union, prompting a backlash from major business groups and raising concerns about a potential global economic slowdown.

The tariffs also led to a decrease in foreign investment in US stocks and real estate, further impacting the US economy.

However, Trump defended the tariffs, arguing that they were necessary to protect American jobs and businesses. He also claimed that the tariffs were already having a positive impact on the US economy.

“We are already seeing a decrease in the trade deficit and a return of manufacturing jobs to the United States,” Trump said in a statement.

“The tariffs are working, and they will continue to work until we have a trade deal that is fair to the American people.”

Despite the controversies surrounding the spending bill and Trump’s economic policies, his administration has managed to navigate the US out of a pandemic-induced recession and create a historically low unemployment rate.

However, the administration’s handling of the coronavirus pandemic and its chaotic withdrawal of troops from Afghanistan have drawn criticism.

As the 2024 presidential election approaches, Trump’s approval ratings remain low, and a majority of Americans do not want him to run for president again, according to a recent poll by the Associated Press-NORC Center for Public Affairs Research. Nonetheless, Trump continues to tease a possible third presidential bid.