Trump's Crypto Tax Rumor Sparks Volatility: USA Coins in Focus

Coin WorldTuesday, Mar 4, 2025 3:02 am ET

1min read

Cryptocurrencies are experiencing significant volatility today, with most assets facing notable price declines. Bitcoin has retreated to around $84,000, marking a 9% decrease from the previous close. The total crypto market cap has also dropped by around 10% to $2.76 trillion. However, rumors about President Donald Trump considering zero capital gains tax for US-based cryptocurrencies have sparked enthusiasm among traders. If this rumor turns true, how will it impact USA coins and cryptocurrencies price predictions?

Crypto analyst Mike Alfred has sparked speculation about Trump announcing zero capital gains on crypto. He noted that Trump would announce this move during the White House Crypto summit on Friday. In January, The Street reported that Eric Trump had confirmed that US-based cryptocurrencies such as XRP would be exempt from capital gains tax while non-US-based projects would be subject to a 30% tax. This move will put the US on par with crypto-friendly countries like el Salvador, which exempts foreign investors from capital gains on Bitcoin to attract investors.

If Trump confirms this development, it will drive price gains for cryptocurrencies like Ripple (XRP), Cardano (ADA), and Solana (SOL). These three USA coins have already been included in plans for a crypto strategic reserve despite market-wide criticism. However, heightened volatility in the broader market has prevented these USA coins from making meaningful gains.

The XRP price has recorded a sharp 16% drop in 24 hours to trade at $2.35 at press time. The price drop follows broader weakness across the cryptocurrencies market but XRP has managed to defend crucial support at $2.14. Technical indicators show mixed momentum. The CMF indicator is positive signalling underlying accumulation. The Awesome Oscillator remains negative but has flashed green suggesting the bearish momentum is weakening. For a bullish reversal, the XRP price needs to flip resistance at $2.70 for a rally to $3.40.

Cardano price has dropped by 23% in 24 hours to trade at $0.82. Despite the dip, ADA price still trades above its 200-day SMA, which is a crucial support level. If bulls defend this zone, another rally past $1 could follow. However, if selling pressure continues, it could lead to a bearish

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