Bitcoin Surges 50% Toward All-Time High as Major Companies Adopt Crypto

Bitcoin has recently surged towards its all-time high, adding around 50% since dropping to its April lows. This surge has been driven by the increasing adoption of crypto by major companies such as SpaceX and OpenAI. The bitcoin price has climbed to give bitcoin a total market capitalization of more than $2 trillion, with bullish traders predicting a looming bitcoin price boom.

As traders eye the vast amounts of capital that remain on the sidelines, Senator Cynthia Lummis has introduced a bill to Congress that she described as “groundbreaking.” The bill aims to establish common-sense rules that reflect how digital technologies function in the real world. It would see small crypto transactions of less than $300 exempt from taxes, as well as crypto lending, and defer taxes on income generated from crypto mining and staking until tokens are sold. The bill would also apply the typical 30-day wash rule to crypto, removing a loophole that has allowed crypto investors to sell tokens at a loss and then quickly buy them up again while still claiming a tax deduction.

Lummis highlighted estimates from the congressional joint committee on taxation that estimated the bill would generate about $600 million through 2034. She emphasized the importance of not allowing archaic tax policies to stifle American innovation, ensuring that Americans can participate in the digital economy without inadvertent tax violations. Lummis had previously attempted to include these crypto tax reforms in the U.S. president Donald Trump’s so-called "one, big, beautiful" bill but ran out of time before the Senate sent it to the House.

House Republicans have declared the week beginning July 14 "crypto week," focusing on three major crypto bills—the stablecoin Genius Act, the market structure Clarity Act and the Anti-CBDC [central bank digital currency] Surveillance State Act. The Trump administration’s pro-bitcoin and crypto agenda has been named as a catalyst for a bitcoin price breakout in the coming months. Analysts predict that bitcoin will print new all-time highs in the second half of the year, buoyed by growing ETF [exchange-traded fund] and corporate treasury flows, as well as U.S. policy and regulatory developments.

Spot bitcoin ETFs, led by the world’s largest asset manager BlackRock, as well as so-called bitcoin treasury companies, have accumulated more than $100 billion worth of bitcoin in the last few years. This accumulation, along with the potential passage of the new crypto bill, could further drive the price of bitcoin higher, making it a significant event for the crypto market.