Bitcoin Price Tumbles As Jack Dorsey Unveils New Bitcoin Wallet

The Bitcoin price has dropped a fraction of a percent in the last 24 hours to trade at $121,310 as of 3.45 a.m. EST.

This comes as Twitter co-founder Jack Dorsey’s Square announced the launch of a Bitcoin wallet for retailers in a move designed to take Bitcoin payments mainstream and challenge credit cards.

JUST IN: Jack Dorsey’s Square introduced a #Bitcoin wallet solution to enable local businesses to accept BTC payments with zero fees.

Bullish 🚀 pic.twitter.com/giHUcQTLLr

— Bitcoin Magazine (@BitcoinMagazine) October 8, 2025

The wallet, part of Dorsey’s bigger vision for Bitcoin, allows merchants to automatically convert up to 50% of their daily sales into Bitcoin, starting November 10. For the first time, small businesses can accept Bitcoin payments and avoid traditional card network fees, with zero transaction charges until 2027.

Connecting the ecosystem with @Square has been the dream since we launched bitcoin in @CashApp in 2018

Starting today, all merchants can now seamlessly stack bitcoin behind the scenes from their daily sales

Bitcoin Payments Acceptance will be live for everyone on November 10 pic.twitter.com/mTqbu8wfGG

— Miles 🌞 (@milessuter) October 8, 2025

After that, a 1% fee will apply, which is still much lower than typical card fees. Dorsey believes the service will help retailers hedge against inflation and economic uncertainty, saying, “It will likely increase in value. It’s certainly a hedge against everything that we’re seeing in the economy.”

At the same time, Dorsey is campaigning for US lawmakers to exempt small Bitcoin payments from taxes, a move that could boost everyday crypto adoption and add momentum to Bitcoin’s use as money.

JUST IN: 🇺🇸 Senator Cynthia Lummis tells Jack Dorsey we have a bill ready for de minimis tax exemptions on Bitcoin

Tax-free Bitcoin payments soon 😎 pic.twitter.com/VSvULFqAEe

— Bitcoin Archive (@BTC_Archive) October 9, 2025

Bitcoin Price Outlook: On-Chain Trends and Tax

Dorsey’s Bitcoin wallet service could increase demand among retailers, as more businesses start converting daily earnings into Bitcoin. This trend is already being watched closely on the blockchain. Analysts say the number of Bitcoin addresses and transaction counts shows more real activity, with long-term holders increasing their positions.

Bitcoin Transaction Count Source: CryptoQuant

But there’s another factor at play: tax rules. The U. Treasury recently announced new interim guidance that may exempt some paper profits on digital assets from the 15% corporate minimum tax.

This is good news for companies holding large amounts of Bitcoin, but for ordinary users, the main challenge is avoiding tax issues from small, everyday crypto purchases.

Dorsey’s push for a de minimis exemption has gained support from politicians and the crypto community. If passed, this could remove a big hurdle for spending Bitcoin at stores and may draw even more users into using crypto for payments.

Increased retail and on-chain activity often signals healthy demand, but profit-taking could slow momentum in the short run.

Bitcoin Price Analysis: Key Support and Resistance Levels

Looking at the BTCUSD 4-hour price chart, Bitcoin is holding above the key support at $119,320, just below the current price of $121,273. This support zone sits near recent lows and is watched closely by traders.

BTCUSD Analysis Source: Tradingview

If Bitcoin falls below this area, the next major supports are at $117,040 and $115,251, as shown by Fibonacci retracement levels and prior consolidation on the chart.

The 50-period Simple Moving Average (SMA) is at $122,298, while the 200-period SMA is at $115,936. Bitcoin is trading close to its short-term moving average, suggesting indecision. The 200-period SMA, located well below the price, acts as a longer-term cushion against further declines.

On the upside, initial resistance is seen at $125,903, with a major high at $126,272.

Technical indicators show Bitcoin is cooling off after its recent surge. The Relative Strength Index (RSI) is at 45.49, meaning the coin is neither overbought nor oversold, which could signal room for more consolidation before the next large move.

The MACD indicator is slightly negative, indicating slowing momentum and a possible risk of further short-term dips.

Bitcoin Price Holds Above 119k Support

If Bitcoin stays above the $119,320 support and buyers step in after recent news, the price could rebound toward $122,220 and higher resistance near $126,000 in the next few weeks. However, if sellers push below $119,000, Bitcoin may retest deeper supports around $117,000 and $115,000 before bulls return.

If Block’s new wallet gains traction with retailers and lawmakers support easier tax rules for crypto, the coin price may stabilise and recover soon.

Traders will be watching key price levels, the pace of merchant adoption, and new signals from Washington. All could influence whether the next move is up or down for Bitcoin in October.

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