After weeks of volatility, the global crypto market is now exhibiting positive signals, sparking widespread optimism. This surprising surge comes amid widespread rumors and speculation about Donald Trump’s 0% capital gains crypto policy.
The market is experiencing positive movement as investors and traders are celebrating the upcoming potential, which has resulted in top assets like Bitcoin, Ethereum, and XRP showing significant price increases.
Crypto Market Jumps on Tax Policy Rumors
Social media platforms like X have been abuzz with rumors of US President Donald Trump launching a 0% crypto tax policy. Analyst Crypto King noted in an X post that the proposed legislation would bring approximately $500 billion to the industry, which he described as a positive factor that would boost the crypto market.
Amid these rumors, the crypto market has shown strong momentum, with trading volumes and investor sentiment turning unprecedently positive. As of press time, the crypto market has surged to $2.26 trillion, marking a remarkable hike of 3.29% in a day.
Major players like Bitcoin, Ethereum, and XRP are also mirroring this broader sentiment. Earlier today, the Bitcoin price surged to the $66k level in anticipation of a possible reference to BTC in Trump’s SOTU speech.
However, soon the price declined as the president skipped crypto and BTC in his address. Currently, BTC price is recorded at $65,363, boasting a significant surge of 3.39% in a day, despite the 3.6% and 25.3% declines over the past week and month, respectively.
While ETH is trading at $1,913, the XRP price is marked at $1.37. This price range shows these altcoins’ strong rebound after weeks of downtrend. Over the past 24 hours, Ether has soared by nearly 5%. However, it has dropped by 4.5% and 33% on a weekly and monthly basis.
At the same time, XRP has jumped by about 3.5% in a single day. This surge comes in contrast to the token’s weekly and monthly declines of 7% and 27%, respectively.
Significantly, the potential regulatory change has created a new source of investor enthusiasm, which has led to increased crypto market activity. Traders use the “buy the rumor” strategy when they purchase assets based on upcoming news. Traders execute their operations based on predictions about upcoming announcements that they believe will occur.
Will Trump Slash Crypto Tax?
Despite growing speculations, no official bill has been passed yet. While reports claim that Trump has released a proposal on 0% capital gains crypto tax policy, there is no formal statement yet.
These rumors come amid Trump’s suggestion of tariffs replacing the US income tax. This approach intends to reduce the financial burden on American households as well as boost the economy and strengthen trade.
According to experts, if enacted, a 0% crypto tax could remove a major barrier for US investors. It could attract new capital and drive more adoption in the crypto market.
Source: https://coingape.com/crypto-market-soars-on-rumors-of-trumps-0-tax-policy-for-digital-assets/
