Bitcoin News Update: U.S. Lawmaker Targets BTC Tax Payments While Bitcoin Dips Sub-$100K

Bitcoin has dropped below $100,000, rattling the market and triggering major liquidations. At the same time, U.S. Representative Matt Gaetz has introduced a bill that could let Americans pay their federal income taxes in Bitcoin. This is more than just a price dip; it could mark a turning point in how crypto interacts with government policy.

Bitcoin Price Movement Overview

In early November 2025, Bitcoin’s price slid sharply, falling more than 6% in a single day and breaking below the crucial $100K level. This drop wipes out a big portion of the gains it made after peaking at over $126,000 in October. The crash triggered mass liquidations: more than $1.3 billion was liquidated across the crypto market in 24 hours, with Bitcoin alone responsible for around $445 million. These kinds of massive sell-offs reflect not just panic, but a broader rebalancing as leveraged bets unwind. Some short-term buyers failed to hold the rebound. BTC pushed back above $100K briefly, but the path upward remains unclear.

U.S. Lawmaker’s Proposal on BTC Tax Payments

Rep. Matt Gaetz (R‑FL) has proposed a highly unusual but bold bill, H.R. 8822, that would amend the U.S. tax code to let people pay federal income taxes in Bitcoin.

Under the bill:

• The Treasury Secretary must set up a system that allows Bitcoin tax payments.
• Any Bitcoin received must be immediately converted into U.S. dollars at the end of a transaction.
• The bill also includes rules about when a BTC payment is considered “received,” how non-tax issues (like contracts or fees) are dealt with, and liability concerns.
• It allows the Treasury to contract with external parties to help build this infrastructure.

Gaetz argues that this move could promote innovation, increase efficiency, and give taxpayers more flexibility. He also sees it as a way to modernize the tax system and keep the U.S. at the cutting edge of financial technology.

Implications for Bitcoin Holders and Investors

If this bill becomes law, Bitcoin holders might get a powerful new option: paying taxes directly in BTC. But there are trade‑offs. Because payments must be converted to dollars, people wouldn’t actually be handing over long-term BTC; it would likely get cashed out immediately. Still, this could boost Bitcoin’s legitimacy and widen its real-world use case. For investors, the proposal brings both opportunity and risk: if accepted, demand for BTC could grow as people accumulate it for tax payments. But uncertainty around regulation could also spook some participants.

This isn’t just a U.S. story; other places have started similar moves. Some states already allow crypto for tax payments, and this bill could push that trend to the federal level.

Broader Regulatory and Market Context

Gaetz’s bill fits into a larger pattern of increasing political support for crypto. His proposal follows heated debates in Washington about how to regulate digital assets. On the regulatory front, another relevant U.S. policy move is the GENIUS Act, which passed in 2025. It creates a framework to regulate stablecoins, but doesn’t directly address Bitcoin. That means Bitcoin could move forward on its own track, separate from stablecoin rules, but still under political scrutiny.

Meanwhile, macro pressure is rising. The Federal Reserve’s recent signals on interest rates have cooled hopes for rate cuts, which weigh on risk assets like Bitcoin. At the same time, geopolitical tensions and macro risk (for example, in the Middle East) are dragging on market sentiment.

Conclusion

Bitcoin’s drop below $100K is making headlines for more than just price action; it’s coming right as lawmakers try to bring crypto into the tax system. Gaetz’s bill could change how people use Bitcoin, while the market faces renewed uncertainty from macro forces. For now, we’re watching two parallel stories: regulatory innovation and market volatility. Both could shape the next chapter of Bitcoin in big ways. Investors and crypto users should stay alert; this moment may be more than a price pullback.

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Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.