Bitcoin Soars to $106.2K as U.S. Senate Advances Stablecoin Bill, Tax Cut Vote Looms

Bitcoin’s price climbed to $106,180.90 on Tuesday, May 20, 2025, buoyed by the U.S. Senate’s advancement of a pivotal stablecoin regulation bill and anticipation for a vote on President Donald Trump’s proposed tax cuts.

The world’s leading cryptocurrency gained 0.8% as of 02:04 ET, hovering near a four-month peak of $107,000 reached on Sunday.

The surge was fueled by thin weekend trading volumes and algorithmic buying triggered at key technical levels, driving a rapid $2,500 increase in under an hour.

The broader cryptocurrency market also saw gains, with Ethereum (ETH) rising 5.22%, Solana (SOL) up 3.69%, and Dogecoin (DOGE) increasing 2.59%, reflecting a bullish sentiment across the sector.

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Senate Progress on Stablecoin Regulation Sparks Optimism

Late Monday, the U.S. Senate voted 66-32 to advance the GENIUS Act, a bill designed to establish a federal framework for stablecoin regulation. The legislation, having overcome earlier resistance from Democratic lawmakers, is now ready for a Senate floor vote later this week.

If passed, it will head to President Trump for approval, marking a significant step toward clearer regulatory guidelines for the crypto industry.

The bill’s progress signals growing institutional confidence in digital assets, a factor analysts cite as a key driver of Bitcoin’s recent rally. Real-time market data indicates Bitcoin’s trading volume spiked 15% in the past 24 hours, underscoring heightened investor activity amid these developments.

Did You Know?
Bitcoin’s market capitalization now exceeds $2 trillion, making it larger than the economies of all countries except the top seven.

Tax Cut Speculation and Market Momentum

Investor focus is also on an upcoming vote on Trump’s proposed tax cuts, which could further stimulate risk assets like cryptocurrencies. The prospect of reduced taxes has fueled optimism, with Bitcoin surging 11% this month alone.

Easing trade tensions between the U.S. and China has also contributed to the bullish outlook, as reduced geopolitical risks encourage investment in high-growth assets.

Analysts project that Bitcoin could test new all-time highs by year-end if regulatory clarity and macroeconomic conditions remain favorable. Market sentiment remains upbeat, with real-time data showing a 20% increase in institutional inflows into crypto funds over the past week, driven by expectations of a more crypto-friendly U.S. regulatory environment.