A new tax-cut bill released by Republicans is expected to increase the US deficit by $2.5 trillion. This legislation proposes a $4 trillion tax cut while cutting spending by $1.5 trillion. While the bill’s impact on the stock market remains uncertain, financial expert Spencer Hakimian believes this loose fiscal policy will benefit Bitcoin (BTC) and gold. He claims increased deficit spending will be positive for both markets due to expanding economic opportunities, according to a recent report in U.Today. However, the increased deficit is expected to negatively affect bond investments as the government will need to issue more bonds to fund its expenses. Earlier today, Fox Business reporter Charles Gasparino confirmed that tariffs would not contribute to reducing the deficit, considering the US and China have reached an agreement regarding trade. Despite this news, Bitcoin price has surged following the agreement breaking a multi-month peak at $105,503 before dropping by more than 2%. Wyoming Senator Cynthia Lummis previously suggested Bitcoin could help address the US national debt problem. Former BitMEX CEO Arthur Hayes recently noted that it’s unlikely the U.S. government would purchase Bitcoin due to concerns over its effect on fiscal debt.