- Bitcoin value surged to $106,000 on Sunday, May 18, attaining its highest weekly shut ever.
- The rally noticed Bitcoin’s market cap attain $2.11 trillion, liquidating over $44M briefly positions.
- Trump’s proposed 5% remittance tax on non-US residents is seen as a key driver, probably pushing customers to crypto.
Bitcoin surged to a new peak over the weekend, reaching $106,000 per coin on Sunday, May 18, marking its highest valuation since early February of this yr.
This rally propelled the flagship cryptocurrency’s market capitalization to a powerful $2.11 trillion and triggered vital liquidations within the derivatives market.
The latest value motion reportedly culminated within the highest weekly closing value for Bitcoin thus far, surpassing a earlier benchmark of $104,298.70 set in December of the prior yr.
Reports indicated that this surge led to the liquidation of over $44 million briefly positions tied to Bitcoin throughout varied derivatives platforms, underscoring the potent shopping for stress.
Market observers level to 2 main catalysts offering the impetus for Bitcoin’s newest ascent.
A major issue seems to be a legislative proposal from US President Donald Trump, dubbed the “big, beautiful bill.”
This package deal of legislative priorities features a contentious 5 p.c tax on remittances despatched by non-US residents residing within the US to their residence international locations.
The remittance tax ripple impact: a crypto catalyst?
This proposed remittance tax is projected to have an effect on over 40 million people within the US who recurrently ship parts of their earnings to assist households overseas.
While the measure has confronted opposition from international locations like Mexico, President Trump’s bill has reportedly superior, having been cleared by the US House Budget Committee in a late-night vote on Sunday.
Analysts have voiced considerations that this bill might inadvertently drive migrants in the direction of different, “unauthorised channels” reminiscent of cryptocurrencies to make remittances and circumvent the proposed tax.
Crypto advocacy group Coin Center has famous that self-hosted crypto wallets fall outdoors the purview of the bill, as they don’t meet the definition of remittance-transfer suppliers.
This potential shift in the direction of crypto for cross-border funds is seen as a bullish driver for Bitcoin.
Regulatory horizon: stablecoin bill sparks optimism
Another vital issue probably fueling the elevated shopping for curiosity in Bitcoin is the anticipation of upcoming regulation.
For years, the cryptocurrency trade has advocated for clear regulatory frameworks as a method to formally combine digital belongings into the established monetary system.
Now, a US bill particularly designed to manage stablecoin issuers is slated to be taken up by the US Congress this week.
Republican Senator Bill Hagerty, one of many sponsors of the ‘Guiding and Establishing National Innovation for US Stablecoins (Genius) Act,’ expressed optimism concerning the legislative progress.
“Next week, the Senate will make history when we debate and pass the Genius Act that establishes the first ever pro-growth regulatory framework for payment stablecoins,” Hagerty was quoted as saying.
According to a report by Coindesk, the bill was reportedly redrafted on the eleventh hour to handle considerations raised by Democrats relating to client safety and nationwide safety components.
The prospect of clearer guidelines for stablecoins, a cornerstone of the crypto ecosystem, is probably contributing to broader market confidence.
A yr of volatility: navigating financial crosscurrents
Bitcoin’s journey this yr has been characterised by excessive value swings.
These fluctuations have occurred amidst broader financial anxieties, together with panic over the potential collapse of the US greenback, spurred by President Trump’s imposition of tariffs on China and different nations.
For occasion, in April, Bitcoin’s value skilled a pointy downturn, plummeting by 30 p.c from its all-time excessive of practically $110,000 to round $75,000 per coin, illustrating the asset’s sensitivity to macroeconomic developments and market sentiment.
The present rally above $106,000 marks a big restoration and a renewed wave of bullish momentum.
