The cryptocurrency market is experiencing heightened volatility as investors react to a proposed Bitcoin tax bill and speculation about a potential Federal Reserve rate cut. The New York Fed has indicated a willingness to ease monetary policy, with futures markets suggesting a 60% probability of a rate cut in December. The proposed legislation would allow Bitcoin to be used for federal tax payments without incurring capital gains taxes, with the aim of establishing a $17 billion US Strategic Bitcoin Reserve. Amid these developments, Bitcoin's price has dropped approximately 3%, reaching a seven-and-a-quarter-month low, as broader market sentiment turns risk-averse. Additionally, fiscal concerns are mounting in the US and UK, with UK borrowing exceeding targets by £9.9 billion and revised US projections reducing expected tariff revenue by $1 trillion, impacting deficit savings forecasts.