The crypto market is grappling with heightened volatility following Biden’s new crypto tax rule. Key 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 case, and how Biden’s crypto tax rule impacts the broader market.
Biden’s Crypto Tax Rule Shakes the Market
On December 27, the Biden administration finalized a controversial crypto broker tax reporting rule targeting DeFi, NFTs, and stablecoins. According to legal experts, the rule requires trading platforms to track and report user activities for all digital asset sales by 2027. The move has sparked legal and Congressional challenges, raising concerns over its impact on the crypto industry.
SEC vs. Ripple: XRP’s Future at Stake
The SEC's case against Ripple is approaching a critical deadline, with the agency’s appeal potentially reshaping XRP’s regulatory classification. If the SEC overturns previous rulings, XRP may face delistings from major exchanges, dampening demand. On the other hand, a withdrawal of the appeal under a pro-crypto administration could propel XRP closer to its 2018 all-time high of $3.55.
XRP Price Trends and Outlook
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 hinging on the SEC's upcoming decisions. A successful SEC appeal could drive XRP below $1.50, while a withdrawal might renew investor confidence and push prices higher.
Bitcoin Under Pressure: ETF Outflows and Regulatory Moves
Bitcoin (BTC) slipped below the $95k level on December 27, weighed down by ETF outflows and Biden’s tax policy. Spot ETF market volatility and concerns over Fed rate decisions have further dampened BTC’s price. Corporate adoption, however, remains a bright spot, with new ETFs like the Bitcoin Standard Corporations ETF showcasing the growing role of BTC in treasury reserves.
BTC Price Trends and Long-Term Potential
BTC’s near-term trends are tied to ETF activity and US government crypto strategies. Spot ETF outflows could drag BTC toward $90,742, while inflows and strategic reserve adoption might push it back toward $100k. Long-term, the increasing use of BTC as a corporate reserve asset could stabilize demand despite short-term volatility.
The Road Ahead for XRP and BTC
As 2024 ends, XRP and BTC stand at pivotal moments. Regulatory developments, including the SEC’s Ripple case and ETF market activity, will shape their trajectories. For investors, staying informed on these critical updates is key to navigating the volatile crypto market.
