Will Trump Abolish Crypto Capital Gains Tax? Buying Surges on Tax Break Rumors

▲ Donald Trump, Virtual Assets, Cryptocurrency, Taxes / ChatGPT Generated Image

Rumors that Donald Trump plans to completely abolish capital gains tax on virtual asset profits have been spreading, driving a sharp surge in the global cryptocurrency market capitalization and heating up investor sentiment.

According to cryptocurrency-focused media outlet CoinGape on February 25 (local time), reports that Trump is preparing an unprecedented tax incentive applying a 0% tax rate on gains from virtual asset transactions have fueled strong upward momentum in the market. On social media platforms including X (formerly Twitter), optimistic analyses suggested that if such a policy shift becomes reality, approximately $500 billion in new capital could flow into the market. Major assets such as Bitcoin (BTC), Ethereum (ETH), and XRP have rallied in response to policy expectations, leading overall market growth.

The total global cryptocurrency market capitalization rose 3.29% in a single day to reach $2.26 trillion. Despite no official bill having been introduced, investors have adopted a “buy the rumor, sell the news” strategy, amplifying market volatility. Trump’s proposal aligns with his existing economic policy direction of replacing income taxes with tariffs, and is interpreted as an effort to reduce the financial burden on U.S. households while stimulating economic activity.

Crypto analyst Crypto King stated, “The proposed bill could inject approximately $500 billion into the industry, serving as a positive factor in boosting the cryptocurrency market.” Market participants continue buying in anticipation that a Trump administration would remove tax barriers to promote virtual assets within the institutional framework. Although the market has experienced extreme volatility in recent weeks, the rumor of tax incentives has become a decisive factor in reversing depressed investor sentiment.

Experts note that if a 0% tax rate policy is implemented, one of the biggest entry barriers for U.S. investors would be eliminated. This is expected not only to stimulate new capital inflows but also to act as a powerful driver accelerating mainstream adoption of virtual assets. While official passage of the legislation may take time, the market has already begun pricing in potential policy benefits, demonstrating strong recovery momentum.

Trump’s proposed tax reform has emerged as a significant variable prompting a reassessment of the long-term growth potential of the cryptocurrency market, going beyond mere rumor. Until an official announcement is made, the market is expected to remain highly volatile while closely monitoring the actual legislative process. As virtual assets are increasingly discussed as a key component of national economic strategy, investors’ attention is turning toward concrete legislative actions from the White House.

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