Bitcoin has surged 1.6% in the past 24 hours, nearing the pivotal $110,000 threshold. This upward momentum coincides with exceptional gains in meme coins like Fartcoin and Bonk, while the total cryptocurrency market capitalization grows by $50 billion, approaching $3.5 trillion. The rally unfolds as the US prepares for potential regulatory changes that could reshape the crypto landscape.
Key Market Movements and Bitcoin's Trajectory
As of July 2025, Bitcoin trades at $109,500, just 2% below its May 22 all-time high. The cryptocurrency has skyrocketed 161,270% since its July 2013 low. Analysts suggest this rebound aligns with the anticipated enactment of the "One Big, Beautiful Bill"—a tax-focused legislation that could indirectly benefit Bitcoin miners through accelerated equipment depreciation write-offs.
Regulatory Developments and Their Impact
The bill, now awaiting presidential approval after congressional passage, introduces two key provisions:
- Reduced taxes for retail investors
- Revival of the 100% bonus depreciation rule, enabling miners to immediately deduct hardware costs
This policy shift may incentivize mining expansion, potentially increasing Bitcoin's hash rate—a historically positive indicator for price trends.
Altcoin Performance Highlights
While Bitcoin leads, altcoins show robust activity:
- Ethereum (ETH), Dogecoin (DOGE), and Cardano (ADA) post significant gains
- Meme coins Bonk (+20%) and Fartcoin (+17%) outperform major cryptocurrencies
- Celestia (TIA) rises 16%, while stablecoins and Bitcoin Cash (BCH) remain flat
Institutional Adoption Milestones
👉 BlackRock's Bitcoin ETF now outperforms their S&P 500 fund in fee generation, signaling growing institutional demand. This trend underscores Bitcoin's maturation as an asset class despite its volatility.
FAQ: Understanding the Current Crypto Rally
Q: Why is Bitcoin nearing $110,000?
A: Combined factors include regulatory optimism, institutional ETF inflows, and broader market momentum.
Q: How does the bonus depreciation rule affect Bitcoin?
A: Miners can immediately write off equipment costs, improving cash flow and potentially expanding network infrastructure.
Q: Are meme coins a sustainable investment?
A: While tokens like Bonk show short-term gains, their long-term viability depends on utility beyond speculative trading.
Q: What risks should investors consider?
A: Regulatory uncertainty and macroeconomic shifts could trigger volatility, even amid bullish trends.
Strategic Takeaways for Investors
- Monitor US policy developments for tax implications
- Diversify beyond Bitcoin into altcoins with strong fundamentals
- 👉 Assess institutional products like ETFs for regulated exposure
The crypto market remains dynamic—staying informed is crucial to navigating its opportunities and risks.