Bitcoin News Today: Bitcoin's Shift to Everyday Payments Challenges Financial Status Quo

Bitcoin's price declined to approximately $117,000 in early October 2025 as Jack Dorsey, co-founder of Twitter (now X) and CEO of Block Inc., launched a new Bitcoin wallet and payment feature for small businesses using Square's point-of-sale (POS) system. The move, dubbed the "Credit Card Killer" by analysts, aims to challenge traditional credit card networks by offering zero-fee Bitcoin transactions for merchants until 2026, with a 1% fee set to apply after January 1, 2027. The feature allows U.S. retailers (excluding New York) to accept Bitcoin payments and convert up to 50% of daily sales into the cryptocurrency, with no transaction costs during the initial year. Dorsey emphasized Bitcoin's role as a "hedge against inflation and economic uncertainty," highlighting its finite supply and potential to decentralize financial systems. Block's shares rose 2.6% following the announcement, reflecting investor optimism about the company's Bitcoin-centric strategy.

The integration of Bitcoin into retail payments aligns with Dorsey's long-standing advocacy for the cryptocurrency as a medium of exchange rather than just a speculative asset. Block, which rebranded from Square in 2021, has positioned itself as a leader in decentralized finance (DeFi) through products like Cash App and Bitkey, its hardware wallet. Miles Suter, Block's Head of Bitcoin Product, stated the goal is to make Bitcoin transactions "as seamless as card payments" while providing small businesses access to financial tools previously reserved for large corporations. The company's balance sheet already holds 8,692 BTC, placing it among the top 13 public Bitcoin holders globally.

Regulatory developments also influenced Bitcoin's price dynamics. U.S. Senator Cynthia Lummis (R-WY) announced a proposed de minimis tax exemption for small Bitcoin transactions, aiming to reduce reporting burdens and promote everyday adoption. The exemption would apply to transactions under $300 annually, capped at $5,000 per year, and exclude business-related conversions. Lummis framed the policy as a step toward aligning Bitcoin with its original peer-to-peer payment vision. However, the proposal faces opposition from critics like Senator Elizabeth Warren, who argue it could create tax loopholes.

Market analysts linked Bitcoin's recent volatility to broader macroeconomic factors, including the U.S. government shutdown and pending regulatory outcomes such as crypto ETF approvals. While Bitcoin's price fluctuated between $110,000 and $120,000 in late September, some experts anticipated increased adoption as institutional investors and sovereign wealth funds integrated the cryptocurrency into their portfolios. The easing of SEC rules on exchange-traded products (ETPs) also raised expectations for a surge in crypto fund applications, potentially boosting liquidity and price stability.

Dorsey's initiative reflects a broader trend of businesses and policymakers exploring Bitcoin's utility beyond its role as a store of value. By reducing transaction costs and simplifying tax compliance, Block's Square platform could accelerate mainstream adoption, particularly among small merchants frustrated with high credit card fees. The success of the Bitcoin wallet will depend on regulatory clarity, consumer behavior shifts, and the cryptocurrency's ability to maintain price stability during conversions.