Bitcoin Surges to 14-Day Peak Amid Anticipation of Major Tax Legislation

Bitcoin’s Recent Rally Linked to Tax Speculation

Bitcoin (BTC) has seen a notable rise, reaching a 14-day high, fueled by optimism surrounding potential changes to capital gains tax regulations in the United States. This surge follows positive legal news for XRP, which has also contributed to the overall bullish sentiment in the cryptocurrency market.

Crypto commentator known as the Bitcoin Historian shared insights, stating, “Trump Advisor Bailey has confirmed that a vote will take place tonight regarding a bill aimed at eliminating capital gains tax on Bitcoin. This legislation is part of Trump’s Big Beautiful Bill, which has already passed in the House and is currently under Senate discussion.”

However, some reports clarify that Bailey was referencing a tax amendment related to Bitcoin and cryptocurrencies, rather than a direct vote on capital gains tax elimination. Nonetheless, any favorable tax changes could significantly benefit Bitcoin and the wider digital asset ecosystem in the U.S.

BTC-Spot ETF Market Anticipates Continued Inflows

As tensions in the Middle East ease and expectations grow for a potential Federal Reserve rate cut in the third quarter, Bitcoin continues to gain momentum. The U.S. BTC-spot ETF market is witnessing strong demand, propelling Bitcoin closer to its all-time high of $111,917.

Recent data from Farside Investors indicates that BTC-spot ETF issuers experienced substantial net inflows, totaling $501.2 million on June 27. Key contributors to this trend include:

• Fidelity’s Wise Origin Bitcoin Fund (FBTC), which saw inflows of $165.5 million.
• BlackRock’s iShares Bitcoin Trust (IBIT), reporting $153 million in inflows.
• ARK 21Shares Bitcoin ETF (ARKB), which attracted $150.3 million.

Nate Geraci, President of ETF Store, commented on the ongoing inflow trend, suggesting that institutional and advisor adoption of Bitcoin is still in its early stages.

BTC Price Forecast: Influencing Factors and Market Scenarios

On June 29, Bitcoin recorded a 0.94% increase, building on a 0.20% rise from the previous Saturday, and closing at $108,350. This marks a three-day winning streak for the cryptocurrency.

The short-term price trajectory for Bitcoin will be influenced by several critical factors, including Federal Reserve communications regarding interest rates, developments in international trade, the ongoing ceasefire between Iran and Israel, and trends in ETF inflows.

Potential Market Scenarios

• Bearish Outlook: A resurgence of tensions between Iran and Israel, legislative hurdles, renewed trade conflicts, hawkish signals from the Federal Reserve, and potential outflows from ETFs could push Bitcoin toward its 50-day Exponential Moving Average (EMA), potentially bringing prices below $100,000.

• Bullish Outlook: If the ceasefire between Iran and Israel remains intact, bipartisan support for cryptocurrency legislation grows, trade tensions ease, the Federal Reserve adopts a dovish stance, and ETF inflows continue, Bitcoin could aim to retest its previous high of $111,917.

This evolving landscape highlights the dynamic nature of the cryptocurrency market and the various factors that could shape its future trajectory.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.