US Senate Budget Bill Passes Without Crypto Tax Relief; Trump Pledges Clear Frameworks Amid BTC Price Dip

According to Fox News, the U.S. Senate has passed a major budget bill without including Senator Cynthia Lummis's proposed amendment to ease cryptocurrency taxation, which would have waived capital gains taxes on small-scale transactions. For traders, this means the current tax complexities remain in place for now. In a separate development, President Donald Trump reiterated his pro-crypto stance at a Coinbase summit, promising his administration will work toward 'clear and simple market frameworks' and referencing the GENIUS Act to support stablecoins. Despite these supportive comments, the market saw a slight downturn, with Bitcoin (BTC) trading around $108,700, down approximately 0.5%, and Ethereum (ETH) falling over 1.2% to about $2,552. The legislative inaction on taxes presents a short-term headwind, while Trump's vocal support offers a potential long-term positive catalyst for the digital asset market.
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The cryptocurrency market is navigating a complex interplay of political signals from Washington D.C. and technical price action, creating a tense consolidation phase for major assets like Bitcoin (BTC) and Ethereum (ETH). While former President Donald Trump reiterated his pro-crypto stance at a recent Coinbase summit, promising to foster a clear regulatory framework, a key legislative effort to ease crypto tax burdens failed to make it into a major budget bill passed by the Senate. This mixed bag of fundamental news has left traders closely watching key support and resistance levels for the next directional move.
Bitcoin, trading under the BTCUSDT pair, has been locked in a tight range, reflecting the market's uncertainty. After reaching a 24-hour high of $110,493.51, the price retraced to around $108,700, marking a slight 0.54% decline. The immediate support level for traders to watch is the 24-hour low of $108,532.30. A sustained break below this level could signal further downside pressure. Conversely, reclaiming the $110,000 psychological level and pushing past the daily high would be a strong bullish indicator, potentially fueled by the positive sentiment from Trump's pledge to support the industry and establish a U.S. Strategic Bitcoin Reserve. The relatively low trading volume on some pairs suggests that many large players may be waiting on the sidelines for a more decisive catalyst before committing significant capital.
Regulatory Hopes and Hurdles
The legislative landscape presents both promise and disappointment. According to reports, a budget bill advanced from the Senate without a crypto-friendly tax amendment proposed by Senator Cynthia Lummis. This amendment aimed to simplify the tax code for digital asset users, including a waiver for capital gains taxes on small transactions. Its exclusion means the industry's push for a more rational tax system faces an ongoing battle. However, this setback was counterbalanced by remarks from Donald Trump, who stated his administration would work toward "clear and simple market frameworks" to ensure American dominance in the crypto space. This continued support from a major political figure provides a crucial narrative for long-term bulls, even as short-term legislative progress stalls. The market's muted reaction suggests that traders are pricing in the rhetoric but are waiting for concrete policy implementation.
Altcoin Market Shows Significant Divergence
While Bitcoin consolidates, the altcoin market is telling a story of divergence. Ethereum has shown notable weakness relative to Bitcoin. The ETHUSDT pair fell approximately 1.29% to $2,552.10, but the more telling metric is the ETHBTC pair. It dropped a significant 2.51% to a 24-hour low of 0.02323, indicating that capital may be rotating from ETH into the perceived safety of BTC or into other, more promising altcoin narratives. This trend is a key indicator of risk appetite in the market; a falling ETHBTC ratio often precedes broader market caution.
In stark contrast to Ethereum's performance, some altcoins have posted impressive gains. Avalanche (AVAX) has been a standout performer, with the AVAXBTC pair surging 6.73% on strong volume of nearly 860 BTC. This powerful move suggests a project-specific catalyst or a strong narrative is attracting buyers, allowing it to decouple from the broader market trend. Other altcoins show a mixed picture: LINKBTC is up a modest 1% on very high volume, suggesting accumulation, while ADABTC is down 2.57%, mirroring Ethereum's weakness. Litecoin (LTCBTC) and Dogecoin (DOGEBTC) also saw modest gains with considerable trading activity. This selective performance underscores a shifting market dynamic where traders are no longer buying the entire market but are instead making specific bets on assets they believe have the strongest fundamentals or short-term catalysts, a clear departure from the broad-based rallies of previous cycles.
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