Bitcoin Surges 1.6% Toward $110,000 as US Regulatory Changes Loom

Bitcoin's price is surging, approaching the significant $110,000 mark with a 1.6% increase in the past 24 hours. This rally is accompanied by an even more impressive performance from certain meme coins, notably Fartcoin and Bonk. The total crypto market capitalization has added around $50 billion during the day, nearing $3.5 trillion. These movements occur as important regulatory changes are anticipated in the United States.

At the time of this writing, Bitcoin is trading at approximately $109,500, about 2% below its all-time high achieved on May 22nd. The cryptocurrency has seen a staggering 161,270% increase since its all-time low recorded on July 6th, 12 years ago. Bitcoin appears poised to challenge its previous highs, coinciding with the passage of the “One Big, Beautiful Bill” proposed by the administration. This bill, which has passed both Senate and House votes, does not include direct crypto regulations but aims to reduce taxes on retail users and reintroduce the 100% bonus depreciation rule. This rule allows Bitcoin mining companies to write off their equipment immediately, potentially boosting operations and increasing the network’s hash rate, which has historically been bullish for the price.

In other Bitcoin-related news, the BlackRock IBIT ETF, which tracks Bitcoin’s price, is now generating more fees than their legendary S&P 500 fund. This indicates strong demand and investor willingness to pay premium fees for exposure to Bitcoin.

The altcoins market is also experiencing significant gains, with most cryptocurrencies charting notable increases. Large-cap coins like Ethereum, Dogecoin, Cardano, Hype, and Sui are all up by significant percentages. However, the most impressive gains come from the meme coins Fartcoin and Bonk, with Bonk leading the day with a 20% increase and Fartcoin following closely with a 17% gain. Celestia (TIA) is also performing well, with a 16% increase. The worst-performing cryptocurrencies for the day are stablecoins, with Fasttoken (FTN) and Bitcoin Cash (BCH) struggling to gain and trading flat.