President Donald Trump‘s tax reduction plans, paired with his aggressive tariff policies, have significantly disrupted the cryptocurrency market, prompting heightened volatility and an ETF-driven sell-off in Bitcoin (CRYPTO: BTC) over the past weeks.
Donald Trump’s Tax Plans…
Trump’s proposal to eliminate income tax for individuals earning less than $150,000—potentially affecting 93% of Americans—aims to boost disposable income, but his simultaneous tariff hikes, including a 20% universal rate and 60% on Chinese imports, have sparked inflation fears, impacting risk assets like cryptocurrencies.
The interplay of these policies, alongside the Strategic Bitcoin Reserve, has created a complex landscape for crypto investors.
Trump’s tax strategy includes making the 2017 Tax Cuts and Jobs Act (TCJA) permanent, which lowered the top income tax rate from 39.6% to 37%, and now extends to exempting incomes below $150,000, as well as tips, overtime pay and Social Security benefits, per Tax Foundation data.
Commerce Secretary Howard Lutnick, in a CBS News interview on March 12, emphasized that …
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