- 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.
The post Bitcoin blasts past $106K: is Trump’s remittance tax bill crypto’s new rocket fuel? appeared first on CoinJournal.
