Bitcoin Soars to Record High as Dow Jones Struggles to Keep Pace

U.S. Stocks React to Tax Bill Passage

U.S. stocks closed mixed on Thursday. The S&P 500 fell slightly, the Dow Jones Industrial Average stayed flat, and the Nasdaq Composite rose modestly. This came as the House narrowly approved President Trump’s tax-and-spending package.

The bill, expected to increase the federal deficit by nearly $4 trillion, includes major tax cuts and higher military spending. It passed the House by a single vote, thanks to last-minute changes that expanded deductions for state and local taxes. The bill now moves to the Senate.

Treasury yields spiked, affecting investor sentiment. The 30-year bond yield briefly hit 5.16%, its highest since 2023, before easing. The 10-year yield also pulled back slightly to 4.55%.Analysts say weak demand at a recent bond auction and debt sustainability concerns fueled the Treasury sell-off.

Argent Capital’s Jed Ellerbroek noted,”The tax bill is good for the economy in the short term. Though, it adds to the deficit, which is bad for markets in the long run.”

Bitcoin Surges to New Heights

Bitcoin (BTC) continues its impressive rally, trading above $111,000. This surge is fueled by optimism about Senate progress on stablecoin regulation and a Trump donor event attended by major crypto holders.

Unlike past bull runs, this rally has seen limited excitement among derivatives traders. Analysts say the gains are driven by spot market demand rather than speculation. Long/short ratios and liquidations indicate a moderate bullish sentiment.