US Tax Bill Could Push Bitcoin Back To $110,000
The United States is drafting a new tax law designed to increase state revenues from the digital asset sector.
This policy has the potential to have a significant impact on the crypto market, especially Bitcoin. Some analysts believe that this policy will accelerate the flow of institutional funds to Bitcoin as a form of hedge against fiscal uncertainty.
The Role of Bitcoin Spot ETFs in the Price Surge
Based on information we quoted from Beincrypto media, the surge in institutional interest is mainly driven by the growth of Bitcoin spot ETFs which are now increasingly popular among professional investors.
Since January 2024, these ETF products have attracted consistent capital flows, boosting the price of Bitcoin steadily.
The latest data shows that the accumulation of Bitcoin by spot ETFs is recorded as one of the strongest factors supporting the momentum of the price increase.
According to market observers’ estimates, if the ETF accumulation trend continues, the price of Bitcoin could soar close to its record high.
Predictive models show the potential for a rally to break through US$110,000 per coin in the next few months.
Side Effects of Tax Policy on Crypto Market
Although positive for Bitcoin in the long term, the tax bill also raises concerns among market players.
This is because the policy requires more detailed reporting of digital asset transactions and sets a higher capital gains tax rate.
Individual and corporate investors must prepare for the potential for increased compliance costs that could erode profits.
However, on the other hand, stricter regulations have actually made Bitcoin increasingly recognized as a legal and regulated institutional asset. Its legitimacy as an alternative investment class has also strengthened.
Bitcoin Price Projection Analysis
The prediction model developed by several research institutions uses data on ETF transaction volumes, corporate adoption trends, and US central bank monetary policy.
From the simulation results, the potential price of Bitcoin in the range of US$105,000–US$110,000 is considered realistic, assuming:
- Spot ETFs continue to record large-scale net inflows
- Fiscal uncertainty triggers demand for hedging
- Interest rate hikes do not significantly depress crypto market liquidity
Some analysts even project that the ratification of this bill could be a “fundamental trigger” for Bitcoin’s rally to an unprecedented price level.
Conclusion
The controversy over the digital asset tax bill in the US has become an important catalyst for the dynamics of the crypto market this year.
Although it has raised concerns about tax and regulatory burdens, this step has the potential to make Bitcoin an asset that is increasingly targeted by institutional investors.
If the projections and ETF accumulation trends continue, it is possible that the price of Bitcoin will break through US$110,000 again in the near future.
