The cryptocurrency market is struggling with increased volatility following Biden's new cryptocurrency tax regulation. Major players like XRP and BTC are under pressure as regulatory uncertainty continues to dominate headlines. This article explores the latest XRP and BTC trends, the SEC vs Ripple lawsuit, and how Biden's cryptocurrency tax regulation impacts the market overall.
Biden’s Cryptocurrency Tax Regulation Shakes the Market
On December 27, the Biden administration finalized a controversial cryptocurrency broker tax reporting rule aimed at DeFi, NFTs, and stablecoins. According to legal experts, this rule requires trading platforms to track and report user activity for all digital asset sales by 2027. This move has raised legal challenges and concerns in Congress about its impact on the cryptocurrency industry.
SEC vs Ripple: The Future of XRP is Under Threat
The SEC lawsuit against Ripple is approaching a critical deadline, with the agency's appeal likely to reshape XRP's regulatory classification. If the SEC overturns previous rulings, XRP could face delisting from major exchanges, reducing demand. On the other hand, withdrawing the appeal under a cryptocurrency-friendly administration could bring XRP closer to its all-time high of $3.55 in 2018.
Price Trends and Outlook for XRP
XRP closed at $2.1446 on December 27, reflecting a 0.42% decline amid broader market turmoil. Regulatory uncertainty continues to pressure the token, with trends dependent on upcoming SEC decisions. A successful SEC appeal could push XRP below $1.50, while a withdrawal could restore investor confidence and push prices higher.
Bitcoin Under Pressure: ETF Outflows and Regulatory Moves
Bitcoin (BTC) fell below $95,000 on December 27, pressured by outflows from ETFs and Biden's tax policy. Spot ETF market volatility and concerns about the Fed's interest rate decision further lowered BTC prices. However, corporate adoption remains a bright spot, with new ETFs like the Bitcoin Standard Corporations ETF showcasing the increasing role of BTC in treasury reserves.
BTC Price Trends and Long-Term Potential
The short-term trend for BTC is linked to ETF activity and the U.S. government's cryptocurrency strategy. Outflows from spot ETFs could pull BTC down to $90,742, while inflows and strategic reserve adoption could push the price back to $100,000. In the long run, increasing BTC usage as a corporate reserve asset could stabilize demand despite short-term volatility.
The Road Ahead for XRP and BTC
As 2024 comes to a close, XRP and BTC are at a critical juncture. Regulatory developments, including the SEC's Ripple case and ETF market activity, will shape their trajectories. For investors, staying informed on these crucial updates is key to navigating the volatile cryptocurrency market.
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