if it does do that, then what will i need to change?Your circuit has WAY too much gain. The signal at the Q1 collector is is a squarewave, and CC3 and RL are differentiating this into the spike waveform. Put a scope probe on the Q1 collector or emitter to confirm.
ak
once i remove the bypass caps the signal becomes a clean sine wavePlease remove BC1 and BC2 and tell me how is the distortion.