Bitcoin Rebounds to $65K as Congress Eyes Sweeping Crypto Tax Overhaul

Bitcoin staged a sharp recovery this week after one of its most turbulent stretches in recent memory. The flagship cryptocurrency dropped from around $73,000 to below $60,000, its lowest level since November 2024, before clawing back to approximately $63,500 by the weekend and pushing further to $65,695 on Sunday, a gain of 2.08% in a single session.

Several macro forces drove the swings. Market sentiment was initially pressured when Michael Saylor's Strategy sold 32 BTC to fund preferred-share dividends, a move that rattled confidence despite being negligible against the firm's 845,000 BTC holdings. The tide turned after President Trump announced progress toward ending the Iran conflict, easing geopolitical fears. Falling oil prices, a broad equity rally, and SpaceX's strong Nasdaq debut, which surged 19% on its first trading day and disclosed substantial Bitcoin treasury holdings, all added fuel to the crypto recovery.

Congress Moves on Crypto Tax Reform

On the legislative front, Washington is turning its attention to how digital assets should be taxed. Ahead of a House Ways and Means Committee hearing, seven separate bill proposals have been circulated that would tackle taxation of stablecoins, staking, and mining, and would also reduce tax burdens on certain small crypto transactions. The proposals mark a significant shift as Congress moves beyond market structure and stablecoin debates into the thornier question of tax policy for the industry.

Separately, the Digital Asset Market Clarity Act, known as the CLARITY Act, was placed on the Senate Legislative Calendar on June 1, making it formally eligible for a full Senate floor vote after clearing the Senate Banking Committee by a 15-9 margin in May. The bill was championed by major crypto firms including Coinbase, Circle, and Ripple, and would grant the CFTC exclusive jurisdiction over digital commodity spot markets. Analysts say the twin tracks of tax reform and market structure legislation represent the most consequential moment for U.S. crypto policy in years.