According to Edward Dowd, the current version of the spending bill lacks meaningful budget cuts and should not be approved in its present state (source: @DowdEdward on Twitter, May 21, 2025). For cryptocurrency traders, this highlights ongoing fiscal policy uncertainty in the US, which historically contributes to market volatility and influences Bitcoin and altcoin price movements as investors seek hedges against potential inflation and fiscal instability. Close monitoring of legislative developments is advised for crypto market participants.

According to Fox News, House Speaker Mike Johnson is urging an aggressive schedule for passing former President Trump's budget bill after recent Republican discord. Market analysts note that expedited budget approval could directly influence fiscal policy, impacting liquidity and risk sentiment in both equity and cryptocurrency markets (source: Fox News). Traders should monitor how swift legislative action could drive volatility, especially in Bitcoin and altcoin markets, as U.S. government spending decisions historically shape crypto price trends (source: Fox News).

According to The White House (@WhiteHouse), President Trump released a full proclamation on May 16, 2025, which led to immediate reactions in both traditional stock and cryptocurrency markets. Initial analysis shows increased volatility in Bitcoin and Ethereum trading volumes, as traders interpret potential regulatory and economic policy changes outlined in the proclamation. Key points from the statement, such as proposed fiscal policies and references to economic recovery, are being closely monitored by crypto investors for potential impacts on U.S. dollar strength and inflation expectations, which historically influence crypto asset flows. Source: The White House (@WhiteHouse, May 16, 2025).

According to @KobeissiLetter, citing CRFB estimates, the House reconciliation bill is projected to increase U.S. public debt by $3.3 trillion over the next nine years, potentially rising to $5.2 trillion by the end of Fiscal Year 2034 if the provisions are made permanent (source: CRFB, via Kobeissi Letter, May 15, 2025). This significant rise in federal debt could increase inflationary pressures and weaken the U.S. dollar, creating a bullish narrative for cryptocurrencies like Bitcoin and stablecoins. Traders should monitor U.S. debt announcements and fiscal policy developments, as escalating debt levels may drive institutional and retail investors toward crypto assets as alternative stores of value.

According to The Kobeissi Letter, historical data shows that during previous US recessions, the federal budget deficit expanded by around 4% of GDP on average, which could mean an additional $1.3 trillion shortfall if a recession occurs in 2025 (source: The Kobeissi Letter, Twitter, May 14, 2025). This significant fiscal deterioration may pressure the US dollar and increase liquidity risks, factors that often drive volatility in the cryptocurrency market. Crypto traders should monitor US fiscal policy and macroeconomic developments closely, as increased deficit spending and potential monetary easing could impact Bitcoin and altcoin prices, as well as stablecoin demand.

According to The Kobeissi Letter, the US budget deficit decreased by $76 billion year-over-year in March, reaching $161 billion, the lowest level in five years. This fiscal improvement is attributed to an 11% increase in government receipts, amounting to $368 billion, and a 7% decline in spending to $528 billion, as reported by ZeroHedge. Traders should note this development as it may influence fiscal policy decisions and market reactions.

According to The Kobeissi Letter, US government spending has surged to 33.9% of GDP, marking a record high outside of crisis periods. This figure is slightly below the 2020 peak of 42.0% during the pandemic. Such levels of expenditure could have significant implications for the US economy and financial markets, potentially influencing inflation rates and fiscal policy adjustments.

According to The Kobeissi Letter, the US Government's year-to-date deficit for FY2025 reached a record $1.15 trillion in February, marking a new high. This figure is $318 billion above the 2024 levels for the same period, representing an increase of approximately 38%. The situation is described as a crisis, indicating significant implications for fiscal policy and potentially impacting financial markets.

According to Tom Emmer (@GOPMajorityWhip), Tim Walz's fiscal policies led to a significant financial downturn, turning an $18 billion surplus into a $5.1 billion deficit before President Trump's tenure. Emmer attributes this to Walz's incompetence.

According to The Kobeissi Letter, as of February 20th, 2025, the US government has accumulated approximately $36.2 trillion in total debt. This debt is divided into two main categories: $28.9 trillion in debt held by the public and $7.3 trillion in intragovernmental debt. These figures are critical for traders as they reflect the government's borrowing needs and potential future fiscal policies, which could influence interest rates and economic growth. Monitoring these debt levels can provide insights into the potential impact on the bond market and broader financial markets.

According to The Kobeissi Letter, the US government's balance sheet reveals a significant $45.5 trillion in liabilities while only having $5.7 trillion in assets, resulting in a $39.8 trillion gap. This financial discrepancy is critical for traders as it may impact government fiscal policies, interest rates, and potentially influence the cryptocurrency market as investors seek alternatives to hedge against possible inflation and currency devaluation.

According to The Kobeissi Letter, the current employment of 2.7 million individuals by the US federal government raises questions about its economic implications. The report highlights the potential influence on government expenditure and fiscal policy, noting that a workforce of this size could impact budget allocations and economic stability. Monitoring these trends is essential for traders as shifts in government employment may affect market dynamics and investor strategies (source: The Kobeissi Letter).

According to Crypto Rover, President Trump is considering replacing the income tax with tariff revenue. He stated that this is 'absolutely' a possibility. This potential policy shift could significantly impact the crypto market by altering the economic landscape, potentially affecting investor sentiment and market dynamics as traders might reassess risk and investment strategies in response to changes in fiscal policy.

According to The Kobeissi Letter, while the refund is not contributing to deficit spending, it does not assist in reducing the US deficit either. The $400 billion, equivalent to approximately 22% of the FY2024 US deficit, could have been allocated for debt reduction, which is crucial for improving the country's fiscal health and indirectly impacting inflation control through stronger fiscal discipline.

According to Omkar Godbole (@godbole17), Bitcoin is currently behaving as a macro asset, reacting to significant economic data and changes in monetary and fiscal policies. Traders are closely watching for Powell's testimony and Wednesday's CPI data, which could influence Bitcoin's price movements.

According to The Kobeissi Letter, the US Pentagon's audit in 2018 cost $1 billion, marking it as the most expensive audit ever. The rising costs imply a potential $1.5 billion expenditure in current terms. This financial burden is critical for budget allocations and may impact future governmental spending, which traders should monitor closely for any fiscal policy shifts affecting markets.

According to @RapidResponse47, President Trump stated that USAID is a 'fraud' and expressed intentions to reform government spending to achieve balanced budgets, which could significantly impact fiscal policies and economic conditions.