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  • Bitcoin blasts past $106K: is Trump’s remittance tax bill crypto’s new rocket fuel?

    Bitcoin blasts past $106K: is Trump’s remittance tax bill crypto’s new rocket fuel?

    Bitcoin blasts past $106K: is Trump's remittance tax bill crypto's new rocket fuel?

    • Bitcoin price surged to $106,000 on Sunday, May 18, achieving its highest weekly close ever.
    • The rally saw Bitcoin’s market cap reach $2.11 trillion, liquidating over $44M in short positions.
    • Trump’s proposed 5% remittance tax on non-US citizens is seen as a key driver, likely pushing users to crypto.

    Bitcoin surged to a new peak over the weekend, reaching $106,000 per coin on Sunday, May 18, marking its highest valuation since early February of this year.

    This rally propelled the flagship cryptocurrency’s market capitalization to an impressive $2.11 trillion and triggered significant liquidations in the derivatives market.

    The recent price action reportedly culminated in the highest weekly closing price for Bitcoin to date, surpassing a previous benchmark of $104,298.70 set in December of the prior year.

    Reports indicated that this surge led to the liquidation of over $44 million in short positions tied to Bitcoin across various derivatives platforms, underscoring the potent buying pressure.

    Market observers point to two primary catalysts providing the impetus for Bitcoin’s latest ascent.

    A significant factor appears to be a legislative proposal from US President Donald Trump, dubbed the “big, beautiful bill.”

    This package of legislative priorities includes a contentious five percent tax on remittances sent by non-US citizens residing in the US to their home countries.

    The remittance tax ripple effect: a crypto catalyst?

    This proposed remittance tax is projected to affect over 40 million individuals in the US who regularly send portions of their income to support families abroad.

    While the measure has faced opposition from countries like Mexico, President Trump’s bill has reportedly advanced, having been cleared by the US House Budget Committee in a late-night vote on Sunday.

    Analysts have voiced concerns that this bill could inadvertently drive migrants towards alternative, “unauthorised channels” such as cryptocurrencies to make remittances and circumvent the proposed tax.

    Crypto advocacy group Coin Center has noted that self-hosted crypto wallets fall outside the purview of the bill, as they do not meet the definition of remittance-transfer providers.

    This potential shift towards crypto for cross-border payments is seen as a bullish driver for Bitcoin.

    Regulatory horizon: stablecoin bill sparks optimism

    Another significant factor potentially fueling the increased buying interest in Bitcoin is the anticipation of upcoming regulation.

    For years, the cryptocurrency industry has advocated for clear regulatory frameworks as a means to formally integrate digital assets into the established financial system.

    Now, a US bill specifically designed to regulate stablecoin issuers is slated to be taken up by the US Congress this week.

    Republican Senator Bill Hagerty, one of the sponsors of the ‘Guiding and Establishing National Innovation for US Stablecoins (Genius) Act,’ expressed optimism about the legislative progress.

    “Next week, the Senate will make history when we debate and pass the Genius Act that establishes the first ever pro-growth regulatory framework for payment stablecoins,” Hagerty was quoted as saying.

    According to a report by Coindesk, the bill was reportedly redrafted at the eleventh hour to address concerns raised by Democrats regarding consumer protection and national security elements.

    The prospect of clearer rules for stablecoins, a cornerstone of the crypto ecosystem, is likely contributing to broader market confidence.

    A year of volatility: navigating economic crosscurrents

    Bitcoin’s journey this year has been characterized by extreme price swings.

    These fluctuations have occurred amidst broader economic anxieties, including panic over the potential collapse of the US dollar, spurred by President Trump’s imposition of tariffs on China and other nations.

    For instance, in April, Bitcoin’s price experienced a sharp downturn, plummeting by 30 percent from its all-time high of nearly $110,000 to around $75,000 per coin, illustrating the asset’s sensitivity to macroeconomic developments and market sentiment.

    The current rally above $106,000 marks a significant recovery and a renewed wave of bullish momentum.

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  • Colorado sees just 80 crypto tax payments in 3 years

    Colorado sees just 80 crypto tax payments in 3 years

    Bitcoin ETFs seeing huge outflows despite BTC price recovery

    • PayPal converts crypto into US dollars before funds reach the state.
    • Bitcoin’s rising value discourages users from spending it on taxes.
    • Stablecoins may become the preferred method for future payments.

    Since 2022, the State of Colorado has collected over $11 billion in income tax. Yet of that, only $57,211 has come from cryptocurrency payments. That is just 0.0005% of the total.

    When Colorado became the first US state to accept crypto tax payments under Governor Jared Polis, the move was presented as a breakthrough for digital finance adoption.

    But nearly two years later, figures provided to Colorado Newsline by the Department of Revenue suggest that uptake has remained negligible.

    The data shows that while crypto ownership is rising across the United States, its use for tax obligations is far from mainstream.

    Colorado residents can use PayPal’s Cryptocurrency Hub to pay in Bitcoin or other digital assets, which are instantly converted into US dollars before reaching the state treasury.

    Despite the infrastructure being in place, only a handful of residents have opted in—and their reasons are more financial than technical.

    Fewer than 80 payments

    In 2022, only eight crypto-based tax payments were made in Colorado, totalling $16,426. That figure rose modestly in 2023 to 22 payments, amounting to $23,241.

    In 2024, the number of transactions increased to 48, but the total paid declined to $17,544. Altogether, fewer than 80 payments have been recorded, with total crypto contributions stuck below $60,000.

    None of this crypto is held by the state. All payments are instantly converted to fiat via PayPal’s system, meaning the Department of Revenue never touches digital assets directly.

    That distinction matters: while Colorado is technically accepting crypto, it is functionally no different from accepting a card payment in dollars.

    Store of value

    Despite the small number of transactions, crypto ownership in the United States remains high. Around 20% of American voters have held or used crypto at some point.

    But for most, coins like Bitcoin are not used to pay for goods or services—they are held as long-term investments.

    That investment mindset is reinforced by Bitcoin’s performance. Since the start of Colorado’s crypto tax pilot in September 2022, the price of Bitcoin has surged more than 320%.

    In September 2023, it posted a 30% annual gain, followed by another 125% in September 2024. With such returns, many holders are reluctant to spend their coins on tax bills, especially if doing so could trigger capital gains tax.

    Stablecoin future

    Colorado is not the only place experimenting with crypto-based public payments. Utah also allows tax payments via PayPal’s system. Detroit is planning to introduce the same model later this year.

    Louisiana already accepts crypto payments for services and fines through Bead Pay.

    Even so, experts remain sceptical about the long-term viability of using major cryptocurrencies for this purpose. Store-of-value assets like Bitcoin and Ethereum are ill-suited to everyday transactions, especially in volatile markets.

    Industry voices suggest that stablecoins—digital tokens pegged to fiat currencies—may be the better fit for tax payments going forward.

    Adoption remains symbolic

    The Colorado example illustrates that offering crypto payments does not guarantee adoption. Many residents are unaware of the option, and even those who are often have little incentive to use it.

    For now, crypto tax payment infrastructure may serve more as a political or technological signal than a practical alternative.

    Still, the systems put in place could pave the way for broader adoption as the digital asset landscape matures. Whether that shift will be led by stablecoins, central bank digital currencies, or other innovations remains to be seen.

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  • Italy set to raise Bitcoin capital gains tax to 42%

    Italy set to raise Bitcoin capital gains tax to 42%

    Italy set to raise Bitcoin capital gains tax to 42%
    • Italy plans to raise the capital gains tax on cryptocurrencies from 26% to 42%.
    • The new policy reflects a trend among European countries tightening crypto regulations.
    • PM Giorgia Meloni assures no new taxes for citizens despite the proposed increases.

    Italy is set to increase its capital gains tax on Bitcoin and other cryptocurrencies from 26% to a staggering 42%, according to Vice Economy Minister Maurizio Leo.

    This announcement was made during a press conference detailing the country’s budget for 2025, where Leo highlighted measures approved by the Council of Ministers aimed at generating additional resources to support families, youth, and businesses.

    Italian’s new tax policy reclassifies crypto taxation

    The new tax policy marks a significant shift from the current framework, which has been in place since the 2023 tax year.

    This change follows a broader reform that reclassifies cryptocurrency taxation, moving away from treating cryptocurrencies as foreign currency, which had previously benefited from lower tax rates.

    Under the previous regime, capital gains exceeding €2,000 (approximately $2,180) were taxed at a rate of 26%.

    European countries tightening tax regulations on digital assets

    The increase in the capital gains tax on cryptocurrencies reflects a growing trend among European countries to tighten tax regulations on digital assets.

    Similar moves have been reported in the UK, where Chancellor Rachel Reeves is considering raising capital gains taxes, including those on cryptocurrencies, from 20% to 39%.

    In addition to the capital gains tax hike, Leo mentioned that Italy plans to intensify its efforts to combat tax evasion, particularly through stricter regulations on cash transactions. This initiative aims to create a more transparent financial environment and bolster government revenues.

    Despite the proposed tax increases, Italian Prime Minister Giorgia Meloni reassured citizens that there would be no new taxes affecting the general population. She stated that the government remains committed to structural tax cuts for workers and plans to allocate €3.5 billion from banks and insurance companies to healthcare and support for the most vulnerable sectors of society.

    As Italy prepares to implement these tax changes, the implications for cryptocurrency investors and the broader digital asset market remain to be seen, especially in a landscape where regulatory scrutiny is increasing across Europe.

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