Bitcoin Surges Amid U.S. Tax Policy Shift and Institutional Endorsements

Bitcoin and key cryptocurrencies are navigating a new wave of momentum as recent U.S. policy changes, regulatory actions, and institutional moves reshape the landscape. While prices exhibit typical volatility, the broader sentiment shows cautious optimism for significant gains later this year.

U.S. Economic Policy Changes Boost Bitcoin Enthusiasm

Investor enthusiasm surged following President Donald Trump’s announcement to utilize tariff revenues to eliminate or reduce federal income taxes for Americans earning under $200,000. This potential increase in disposable income is seen as a bullish catalyst for cryptocurrency investments, as more individuals may channel extra funds into digital assets. According to Blockchain.News, crypto analysts anticipate a corresponding uptick in Bitcoin buying pressure.

In a landmark move, the U.S. government has also established a Strategic Bitcoin Reserve, holding approximately 200,000 BTC. This initiative, as referenced on Wikipedia, underscores an unprecedented level of governmental validation of Bitcoin as a strategic asset, further strengthening long-term investor confidence.

Meanwhile, market prices are reflecting typical short-term volatility. Bitcoin is currently priced around $93,025, down 1.5% in the past 24 hours. Ethereum stands at $1,764, with a 2.8% decline, while XRP has shown resilience, rising 2.3% to $2.23. Despite the turbulence, updated projections suggest Bitcoin could peak near $250,000 by year-end, although risks of a temporary pullback toward $70,000 remain possible.

Regulatory Shifts and Altcoin Developments Capture Attention

Beyond Bitcoin, altcoins are gaining fresh institutional interest. The CME Group announced plans to launch cash-settled XRP futures starting May 19, 2025, pending regulatory approval. This step, reported by Reuters, is seen as a pivotal move toward broader acceptance of alternative cryptocurrencies within mainstream financial products.

However, not all news is bullish. The Swiss National Bank has publicly declined to add Bitcoin to its foreign currency reserves, citing concerns about liquidity and price stability. While the decision, covered by Reuters, does not significantly alter crypto’s trajectory, it highlights the persistent divide in institutional acceptance.

Other notable events include rumors of further Bitcoin accumulation by Michael Saylor, ongoing SUI token ecosystem rallies leading to a 27% price jump, and isolated misinformation incidents that, while viral, have not materially impacted trading behaviors.

As the second quarter unfolds, crypto investors are closely monitoring regulatory developments and macroeconomic shifts that could dictate whether 2025 becomes a breakout year for digital assets or another volatile cycle of highs and lows.