Senator Lummis Advocates for Legislation Allowing Tax-Exempt Bitcoin Transactions: A Potential Move Towards Widespread Acceptance?

Bitcoin is currently trading just under $109,000 following a 29.74% increase in the second quarter, marking its most robust Q2 since 2020. While institutional investments and corporate accumulation are key factors, the recent advocacy for crypto tax reform in Washington is contributing an additional layer of optimism for long-term adoption.

U.S. Senator Cynthia Lummis has recently proposed a comprehensive bill aimed at updating the taxation framework for cryptocurrencies. Notable aspects include exempting transactions below $300 from capital gains tax (with an annual cap of $5,000) and postponing taxation on mining or staking rewards until they are sold.

Senator Cynthia Lummis has just introduced a significant crypto tax reform bill after crypto-related provisions were omitted from the latest federal budget package.
$300 de minimis exemption
No tax on mining/staking until sold
Charity & lending exclusions
Aims to end double… pic.twitter.com/d8p6qixWju

— Ethos.io (@Ethos_io) July 4, 2025

The proposal also includes tax incentives for lending and charitable contributions and permits mark-to-market accounting for crypto traders, aligning digital assets with traditional securities.

Projected to generate $600 million from 2025 to 2034, the bill could be enacted in a more favorable regulatory climate in 2025. If approved, it would facilitate the use of crypto in everyday transactions and reduce barriers for both retail and institutional adoption, potentially paving the way for greater Bitcoin integration into mainstream finance.

Institutions Accumulate BTC Amid ETF Inflows

Institutional interest continues to drive Bitcoin’s upward momentum. As reported by SoSoValue, U.S. spot BTC ETFs saw inflows of $769.6 million this week, marking four consecutive weeks of net positive inflows. This trend indicates that institutional investors are establishing positions with a long-term perspective.

On the corporate front, MicroStrategy increased its holdings by acquiring 4,980 BTC, raising its total to 597,325 BTC. Japan’s Metaplanet added 1,005 BTC, while Blockchain Group purchased 60 BTC—showing strong confidence in BTC as a treasury asset.

Standard Chartered analyst Geoffrey Kendrick has raised his year-end forecast to $200,000, citing increasing demand and improving macroeconomic conditions. His base case for late 2025 remains at $135,000, reinforcing a fundamentally bullish outlook.

Key Institutional Activity:

• MicroStrategy: +4,980 BTC (597,325 total)
• Metaplanet: +1,005 BTC
• U.S. Spot ETFs: +$769.6M inflows this week

Bitcoin (BTC/USD) Technical Outlook: Bulls Hold $108K

The price forecast for Bitcoin remains optimistic, as the asset stays above a crucial ascending trendline established from the June 20 low and continues to find support near $108,000. However, momentum has diminished following a rejection at $110,413.

Bitcoin Price Chart – Source: Tradingview

The MACD has shifted to a bearish position on the 2-hour chart, indicating that a brief consolidation or pullback may be forthcoming. Key support levels are at $108,000 and $107,325, while resistance remains at $110,413 and $112,041.

Technical Trade Setup:

• Entry: $108,000–$108,600 on bullish signal
• Targets: $110,413 → $112,041
• Stop: Below $107,200
• MACD: Bearish crossover, awaiting price confirmation

As long as Bitcoin does not fall below $108K, the bullish trend is preserved. Traders may anticipate a rebound from support to re-enter positions, particularly as policy developments and institutional activity sustain positive sentiment.

Bitcoin Hyper Presale Surges Past $1.92M as Price Rise Nears

Bitcoin Hyper ($HYPER), the first Bitcoin-native Layer 2 utilizing the Solana Virtual Machine (SVM), has exceeded $1.74 million in its public presale, with $1,927,122 raised out of a target of $2,373,526. The token is priced at $0.012125, with the next price tier anticipated within hours.

Aimed at combining Bitcoin’s security with Solana’s speed, Bitcoin Hyper facilitates rapid, low-cost smart contracts, dApps, and meme coin creation, all while ensuring seamless BTC bridging. The project has been audited by Consult and is designed for scalability, trust, and simplicity.

The convergence of meme appeal and genuine utility has positioned Bitcoin Hyper as a Layer 2 project to monitor in 2025. With staking, an efficient presale, and a complete rollout expected by Q1, $HYPER is gaining significant momentum.

The post Bitcoin Price Prediction – Senator Lummis Pushes Tax-Free BTC Spending Bill: Is This the First Step Toward Mass Adoption? appeared first on Cryptonews.