XRP and BTC Face Volatility: Biden's Crypto Tax Regulation Causes Ripple Effects

The cryptocurrency market is struggling with increased volatility following Biden's new cryptocurrency tax regulations. Major players like XRP and BTC are under pressure as regulatory uncertainty continues to dominate headlines. This article explores the latest trends in XRP and BTC, the SEC lawsuit against Ripple, and how Biden's cryptocurrency tax regulations are impacting the overall market. Biden's regulation of taxing cryptocurrencies is shaking the market. On December 27, the Biden administration finalized a controversial cryptocurrency broker tax reporting rule targeting DeFi, NFTs, and stablecoins. According to legal experts, this rule requires trading platforms to monitor and report user activities for all digital asset sales transactions by 2027. This move has raised legal and congressional challenges, sparking concerns about its impact on the cryptocurrency industry. SEC compared to Ripple: The future of XRP is under threat The SEC's lawsuit against Ripple is nearing a crucial deadline, with the agency's appeal potentially reshaping the regulatory classification of XRP. If the SEC overturns previous rulings, XRP could face delisting from major exchanges, reducing demand. On the other hand, withdrawing the appeal with the support of a cryptocurrency-friendly government could bring XRP closer to its all-time high in 2018 of $3.55. Price trends and prospects of XRP XRP closed at $2.1446 on December 27, reflecting a 0.42% decrease amidst a broader market turmoil. The uncertainty surrounding regulations continues to exert pressure on the token, with the trend depending on the upcoming decisions of the SEC. A successful appeal by the SEC could push XRP below $1.50, while withdrawals may restore investor confidence and drive the price higher.

Bitcoin is under pressure: ETF money outflows and regulatory moves Bitcoin (BTC) has dropped below $95,000 on December 27, under pressure from the outflow of funds from ETFs and Biden's tax policies. The volatility of the ETF market and concerns about the Fed's interest rate decision have further reduced the price of BTC. However, the adoption by companies is still a bright spot, with new ETFs such as the Bitcoin Standard Corporations ETF demonstrating the increasing role of BTC in the treasury reserve. Please provide Vietnamese text to be translated. BTC price trend and long-term potential The short-term trend of BTC is closely related to the ETF activity and the US government's cryptocurrency strategy. The ETF's immediate outflow could pull BTC back to $90,742, while the inflow and the implementation of the reserve strategy could push the price back to $100,000. In the long run, the increasing use of BTC as a corporate reserve asset may stabilize demand despite short-term volatility.

The road ahead for XRP and BTC As 2024 draws to a close, XRP and BTC are at a critical juncture. Regulatory developments, including the SEC's case against Ripple and ETF market activities, will shape their trajectory. For investors, staying updated on these key developments is vital for navigating the volatile cryptocurrency market.

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