Ripple (XRP), Litecoin, Cardano gain $10B as Trump appoints Paul Atkins to replace Gensler, Crypto Tax expert weighs in

Crypto market analysis: 

While Bitcoin stagnated below the $100,000 mark on Wednesday, Dec 4,  Ripple (XRP), Litecoin (LTC) and Cardano (ADA) have emerged top performing crypto assets, adding over $10 billion to their cumulative market cap, since Trump’s re-election on November 5.

A prominent crypto tax expert has weighed in on how Trump’s proposed zero crypto tax law could potentially spark another rally as the January 20 inauguration date draws closer.

Crypto Marketcap hits $3.58T All-time high as Trump appoints Gensler’s replacement

Having declared support for the Crypto industry during the campaigns, Trump’s Presidential transition committee has put forwards a series of crypto-friendly policy considerations, and cabinet nominations.

On December 4, Donald Trump officially announced the nomination of Paul Atkins as the incoming Chairman of the US SEC, due to replace the outgoing Gary Gensler on January 20, 2025.

Paul Atkins support for the crypto industry has been well documented in recent years, sparking hopes that the sector could experience a more balanced oversight, after years of intense scrutiny under Gensler‘s leadership.

As expected, investors reacted positively, as the global crypto market cap rose 1.4% to hit a new all-time high of $3.56 trillion within hours of the announcement.

Since Trump’s re-election on November 5, the global crypto market cap has grown by more than $1.38 trillion, reaching a new all-time highs of $3.56 trillion on December 4.

However, experts suggests this could be the start of sweeping policy changes that could trigger further bullish tailwinds for the crypto sector.

Crypto Tax expert hints more gains ahead as Trump policy changes begin

President-Elect Donald Trump’s administration could drastically shift the global crypto landscape with a proposed policy to eliminate capital gains taxes on U.S.-issued cryptocurrencies.

According to sources close to the transition team, the proposal would apply to tokens created by U.S. companies.

In an exclusive interview with FXEmpire, Gedimas Butkus, CEO of Locked.Money, an EU-approved digital asset management platform has weighed in the potential impacts of Trump’s proposed zero tax policy on the crypto markets.

Question 1: Trump’s crypto tax policy could potentially eliminate taxes on tokens created by US-companies. What ways could this impact the global crypto market?

Gedimas Butkus (GB):  Firstly, this policy might boost crypto adoption by making investments in these assets more financially appealing due to the tax relief on profits.

Investors, from individuals to institutions, might be more inclined to invest, knowing that their gains are spared from capital gains tax, which could lead to increased liquidity and potentially higher valuations for U.S.-issued tokens. 

Furthermore, this policy could serve as a magnet, attracting crypto businesses to the United States.

Companies might view the U.S. as the ideal spot for registration or relocation to capitalize on this tax benefit, thereby fostering innovation and investment in blockchain technology within the country.

Question 2: Tax optimization in TradFi is largely seen as a play for High net-worth traders and Institutional investors. Looking ahead, would it be any different in crypto?

GB: That’s precisely the core of our value proposition at Locked.Money. Historically, tax optimization strategies in traditional finance have indeed been the preserve of High Net Worth Individuals (HNIs) and institutions.

We now automate tax optimization processes that might take months TradFi. What was once a laborious task involving legal and financial advisors can now be accomplished almost instantly, leveraging blockchain technology to automate many of the steps involved in setting up tax-efficient structures.

With Locked Money, we’re reducing the costs associated with traditional tax optimization making it accessible for individuals who might not have the millions in assets typically required.

Question 3: With Trump’s proposed tax-free crypto policy, what are the chances that the EU (or any other country) could implement a similar policy? 

GB: Globally, this could spark a competitive response from other nations, possibly leading to a race to the bottom in crypto taxation.

Countries might roll out their own tax incentives to keep or lure crypto businesses, ultimately creating a more favorable tax environment for the crypto industry worldwide. Personally, I would welcome a global trend towards tax-free crypto policies. The current taxation system often feels burdensome, taxing individuals on both income and expenditure.

XRP, LTC, ADA lead altcoin market rally Trump policy changes begin’

Early speculations suggests Trump’s zero crypto tax policy could impact the  markets in 2 major ways.

First, this policy could push investors to pivot from traditional markets to crypto. I.e. US-based TradFi companies issuing tokens, or strategically adopting blockchain technology to enjoy tax optimization benefits.

More so, the policy could effectively eliminate taxes on profits made from trading top assets such as Ripple (XRP), Litecoin (LTC), and Cardano (ADA)  which have their roots in the US, potentially increasing market demand for these assets.

Unsurprisingly these assets have raced up the top gainers list after Trump Paul Atkins as Gensler’s replacement on Wednesday. As strategic investors switch focus to Trump crypto tax law proposal, here’s how XRP, LTC, and ADA could move in the days ahead.

Ripple (XRP) price forecast: $3 breakout in sight if $2.5 support holds

After breaching the $2.9 resistance on Tuesday, XRP price has retraced by 17% in the last 24-hours, as short-term traders move to lock-in early profits. However, technical indicators suggests the upward momentum could return if bulls manage to avoid a breakdown below the critical $2.40 support level.

The pivot point at $2.40 serves as a critical support level, as indicated by the high trading volume during the pullback. If this support holds, it could provide a strong base for buyers to regain control and push XRP towards the $2.93 resistance, with the $3 psychological level firmly in sight.

The volume profile and the Relative Strength Index (RSI) support this outlook. As seen above XRP’s RSI has cooled slightly but remains above the 78 level, suggesting bullish momentum is intact.

If XRP price can hold firm above the $2.40 pivot aligns, bull could regroup to state a decisive breakout above the $3 mark for the first time in 3 years. On the downside, failure to hold $2.40 may see a deeper correction below $2.

Litecoin price forecast: Zero Tax and ETF approval expectations could spark $200 rally

After closing November 2024 with 50% gains, Litecoin price advanced to a new YTD peak of $139 on December 3, before settling above the $130 support level at press time.

Litecoin is one of a leading cryptocurrencies with strong presence within the US, sparking hopes of more bullish tailwinds from Trump’s proposed crypto tax laws. More so, the appointment of Paul Atkin raises expectations that crypto ETF applications including Canary Capital’s LTC ETF filling could be approved next year.

These two factors have formed major fundamental demand catalyst for LTC over the last few days.

From a technical perspective, Litecoin bulls could set sights on reclaiming the $150 territory if the current market dynamics persist.

The Donchian Channels (DC) indicator highlights sustained momentum, with LTC trading near its upper band at $139.74, signaling continued bullish pressure.

Additionally, the Directional Movement Index (DMI) confirms the uptrend, as the +DI (36.52) surpasses the -DI (4.37), while the ADX (48.95) indicates a strong trend. This combination suggests that LTC could target the next resistance at $150, with further upside potential toward $200 if bullish sentiment intensifies.

On the downside, $109 serves as a key support level. A breakdown below this level would invalidate the bullish outlook and signal a potential retracement to $90.

Cardano price forecast: Charles Hoskinson’s alignment with Trump could propel $2 breakout

Cardano (ADA) remains on a strong bullish trajectory, fueled by founder Charles Hoskinson’s recent alignment with Trump. Based on technical insights in the ADAUSD chart below, the Ichimoku Cloud indicator reflects solid upward momentum, with the price trading well above the blue conversion line ($1.10) and the red baseline ($0.99).

This suggests that the bulls are in control, and a rally toward the $2 resistance level is likely if ADA maintains its current momentum.

The BBP (Bollinger Band Percentile) indicator at 0.2725 indicates ADA is nearing overbought territory. However, the growing volume trend supports sustained buying pressure, reinforcing the bullish outlook.

Key resistance levels to watch are $1.50 and $2. Breaking above $1.50 would confirm a continuation toward $2.

On the downside, $1.10 serves as a critical support level, validated by the Ichimoku baseline. A breach below this level could signal a reversal toward $0.99, negating the bullish thesis.