Bitcoin maintains key support level above $70,000 while regulatory tensions emerge over crypto tax policy positions.
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Bitcoin held above the critical $70,000 level, gaining approximately 7% from Sunday lows as the cryptocurrency demonstrated relative strength against equities and gold. ETH and SOL posted modest 1% gains while XRP remained flat, with analysts citing seller exhaustion and improving ETF flows as key drivers.
The price stability comes amid subdued U.S. inflation data, providing a favorable macro backdrop for risk assets. Bitcoin's decoupling from traditional markets signals potential institutional confidence, with the cryptocurrency showing reduced correlation to gold and software stocks that have been treading water.
Meanwhile, regulatory tensions surfaced as Block founder Jack Dorsey publicly challenged Coinbase CEO Brian Armstrong to clarify the exchange's position on Bitcoin tax relief. Reports suggest Coinbase may favor stablecoins-only treatment for de minimis relief on crypto payments, prompting Coinbase's CPO to reject claims of opposing broader Bitcoin tax benefits.
The tax policy debate highlights growing friction within the crypto industry over regulatory strategy, particularly as lawmakers consider exemptions for small Bitcoin transactions that could boost mainstream adoption.