Crypto Market Surges 2.51% as US Delays Tariffs and Florida Eliminates Bitcoin Capital Gains Tax

The crypto market has surged, driven by a confluence of macroeconomic, political, and institutional developments. The delay in the implementation of tariffs by the US government has significantly contributed to this upward trend. The postponement of the 50% tariffs on European Union imports, initially scheduled for June 1, has been rescheduled to July 9. This decision, following discussions with European Commission President, has alleviated fears of a global trade war. Consequently, European markets have seen an uptick, and the euro has reached its highest point since April 30, fostering a more optimistic outlook among investors. This positive sentiment has spilled over into the crypto space, boosting major digital assets.

Another significant factor driving the market's rise is the growing demand for Bitcoin and Ethereum ETFs. On May 23, Bitcoin ETFs saw net inflows of $211.74 million, bringing total ETF assets to $131.39 billion, which is over 6% of Bitcoin’s total market cap. This influx indicates rising trust from large institutional investors. Ethereum also recorded $58.63 million in inflows on the same day, with ETF assets now standing at $9.12 billion, nearly 3% of Ethereum’s market cap. This strong interest from institutional investors has bolstered investor confidence in the crypto market.

Bitcoin has reclaimed the $110,000 level, a key psychological and technical threshold. This sharp rebound suggests that the sell-off was a shakeout, not a structural breakdown. Traders and analysts now see this move as confirmation of continued strength, with buy pressure overwhelming fear. A well-known crypto whale just purchased 30,000 ETH—worth over $75.6 million—via OTC (over-the-counter) channels. The last time this whale made such a move, Ethereum rallied 40% in just two weeks. Large OTC buys signal confidence from experienced investors—and tend to precede big moves.

In a major policy shift, Florida has become the first U.S. state pushing to eliminate capital gains tax on Bitcoin. This move could make Florida a crypto-friendly tax haven, attracting both individual investors and businesses. Such regulatory support marks a growing trend of state-level crypto adoption, putting the U.S. on a path to compete with leading crypto jurisdictions globally. Leading cryptocurrency assets are currently in the green, with Bitcoin rising 2.51% in the past 24 hours to trade around $109,837. Ethereum is at $2,566.43, while Solana jumped by 9.90% to hit $177.14. XRP also climbed 1.54% to $2.34. These gains across major cryptocurrencies are contributing to the overall upward trend in the sector.

While the current performance is strong, investors should closely monitor upcoming U.S. economic data. The release of the FOMC meeting minutes, April PCE inflation data, and Q1 GDP figures could significantly impact the market's next trend. The Federal Reserve's upcoming statements may also provide insights into future interest rate moves. Positive outcomes from these events could further boost investor trust in crypto, while adverse results could lead to a pullback. Therefore, traders must remain cautious and prepared for potential market shifts.