Bitcoin (BTC-USD, Financial) was trading at $88,190.8, down 1.76% as of 14:34 ET, as reports surfaced that President Donald Trump is considering eliminating capital gains taxes on U.S.-based cryptocurrencies. The proposal, which could be announced at the March 7 Crypto Summit at the White House, would make U.S.-based crypto investments tax-free, while non-U.S. crypto holdings would face a 30% tax.
The news follows last week's announcement of a strategic crypto reserve, which briefly boosted Bitcoin prices. However, analysts warn that removing capital gains taxes could increase market volatility, as investors might sell non-U.S. crypto in favor of American-based digital assets.
There are also concerns about a surge in new cryptocurrency creations within the U.S. Bitcoin's 52-week range stands between $49,486.9 and $109,228.6, indicating it remains near the higher end of its yearly performance despite today's dip. The market remains watchful for further updates from the White House summit.
