Bitcoin News Today: U.S. Government's Bitcoin Tax Plan Sparks $87K Surge

Bitcoin's price surged past $87,000 in late November 2025, driven by a confluence of legislative developments, institutional adoption, and a growing narrative around Bitcoin as a hedge against inflation. Analysts and policymakers point to three key factors underpinning the rally: the U.S. government's push for a strategic Bitcoin reserve, expanding institutional investment in crypto-related products, and a legislative shift enabling tax payments in Bitcoin.

The introduction of the Bitcoin for America Act of 2025 by Rep. Warren Davidson (R-Ohio) has positioned the U.S. government as a potential major Bitcoin buyer. The bill, endorsed by the Bitcoin Policy Institute (BPI), would allow Americans to pay federal taxes in Bitcoin without triggering capital gains taxes, with the proceeds deposited into a Strategic Bitcoin Reserve. Davidson argues this approach would "give the nation a tangible asset that appreciates over time," contrasting it with the U.S. dollar's erosion due to inflation. BPI's proprietary model estimates that such a system could generate significant long-term fiscal benefits by accumulating Bitcoin through voluntary taxpayer contributions.

Institutional interest in Bitcoin and other cryptocurrencies has accelerated, bolstered by the approval of spot Bitcoin ETFs in early 2024 and the recent launch of XRP ETFs. Ripple's XRP, for example, saw $16 million in ETF inflows on Wednesday, November 20, as derivatives markets stabilize. Meanwhile, Ark Invest, led by Cathie Wood, added $39.6 million to its holdings of crypto-related stocks, including Bullish, Circle, and Bitmine, as broader crypto markets dipped. These moves signal growing confidence among institutional investors, who are increasingly viewing crypto as a diversification tool amid macroeconomic uncertainty.

The Biden administration's March 2025 executive order establishing a Strategic Bitcoin Reserve, though initially met with skepticism, has gained traction as a policy framework. While the order initially limited reserve growth to seized assets, the Bitcoin for America Act proposes expanding it through voluntary tax payments. This shift has reignited discussions about Bitcoin's role as a "store of value," with proponents arguing that government accumulation could drive demand and price stability.

The surge in Bitcoin's price coincides with broader market optimism, as crypto firms and investors navigate regulatory clarity and technological advancements. However, challenges remain, including the SEC's cautious stance on crypto regulations and the volatility inherent in digital assets. As the U.S. government and private sector align on Bitcoin's potential, the market's next move will likely hinge on how these factors evolve.