Bitcoin Price Tumbles As Jack Dorsey Urges US to Exempt Small Bitcoin Payments from Tax

The Bitcoin price dropped 1% in the last 24 hours to trade at $121,153 on a 27% decrease in trading volume to $47.41 billion.

Square founder Jack Dorsey wants the US to create a small tax exemption for Bitcoin payments to make it easier to use daily. After Square added Bitcoin payments for merchants, Dorsey said, “We want Bitcoin to be everyday money ASAP.” His idea supports a proposal by Senator Cynthia Lummis, who introduced a bill to remove capital gains tax on Bitcoin transactions under $300, up to $5,000 per year.

Every Bitcoin payment in the US is taxed if the price has gone up since purchase, making it hard to use for small purchases. Crypto supporters say this rule limits Bitcoin’s use as real money. Coinbase’s tax vice president, Lawrence Zlatki, told the Senate that a tax exemption would help more people use crypto for payments and keep innovation in the US.

Other countries like Germany, Portugal, and the UAE already have friendly crypto tax rules, giving them an advantage. Supporters believe the change would help Bitcoin work as both digital cash and a store of value—just as its creator, Satoshi Nakamoto, intended.

Bitcoin Price Targets $140K as Bullish Momentum Builds

Bitcoin shows strong signs of recovery after forming a double bottom pattern around the $110,000 support zone. This pattern often signals a bullish reversal, meaning prices could rise further if the trend continues.

After months of sideways trading, Bitcoin started to build support between $100,000 and $110,000. This period of consolidation helped the market find stability before buyers returned. The breakout above the neckline earlier this month was the key signal that bulls were taking control again.

Traders are now watching the reward zone between $130,000 and $140,000, which marks the possible target area if the breakout continues. This means that if Bitcoin stays above its neckline and gains momentum, it could reach the $140,000 level soon.

BTCUSDT Analysis Source: Tradingview

On the downside, $110,000 remains the main support level. If Bitcoin falls below it, the bullish pattern may fail, and the price could return to its previous range. But as long as BTC stays above this level, most traders expect more upward movement.

The Relative Strength Index (RSI) is currently around 60, which means Bitcoin has positive momentum but is not yet overbought. This gives the market more room to climb before facing selling pressure.

Overall, Bitcoin’s chart shows that the market is in a bullish setup. If buyers maintain control, the next resistance could appear around $130,000 before aiming for the $140,000 target.