Retail participation in cryptocurrencies is predicted to see a major boost in the wake of the Trump administration repealing the controversial Internal Revenue Service (IRS) rule mandating digital market players to reveal tax information on transactions conducted on their platforms, sector experts said.
The move will also boost institutional investments in the crypto market, leading to Bitcoin’s next rally, which is anticipated to retest its recent all-time high of $106,395 recorded on January 22, 2025, they said.
Bitcoin prices shot up in the early trading hours on Monday, April 28, to cross the $94,000 mark, touching $94,083 briefly, gaining close to 8 per cent in 7 days.
US President Donald Trump signed into law a bill mid this month to overturn a revised rule from the IRS that expanded the definition of a broker to include decentralised cryptocurrency exchanges.
The IRS rule was due to take effect in 2026.
This, along with the clarity around regulations for stablecoin payments and strategic bitcoin reserves in the US, could trigger another round of bull run in crypto markets in the Middle East and other major regions, market players said.
They said that the developments will also play a pivotal role in transforming the digital asset industry globally.
“Bitcoin (BTC) surged above the $93,000 mark owing to strong inflows in the ETF segment. This bullish momentum will create a strong foundation for BTC’s next rally, and it may retest its all-time high,” Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset exchange, told Arabian Business.
Market experts, however, advised investors to closely monitor macroeconomic indicators and market liquidity, as these factors will likely influence Bitcoin’s near-term trajectory.
BTC prices were languishing below the $80,000 level for several days in the recent week, plunging to $74,567 on as recent as April 10.
Trump’s crypto regulatory milestone
Thakral said Trump signing the first crypto bill into law is a watershed moment for the digital asset industry across the globe.
Trump’s strategic move will lay a strong foundation for a regulatory framework around strategic Bitcoin reserves and stablecoins.
Vugar Usi Zade, COO at Bitget, a globally leading crypto exchange with major operations in the UAE, said the latest supportive action by the Trump administration has come as a big relief to virtual asset service providers, as the IRS rule would have compelled them to reveal tax information related to transactions conducted on their platforms.
He said the move will also create a strong foundation for a healthy regulatory framework for virtual assets in the world’s largest economy.
“The clarity around regulations for stablecoin payments and strategic bitcoin reserves will play a pivotal role in transforming the digital asset industry globally,” Usi Zade told Arabian Business.
The digital asset industry had been expressing its concerns about the IRS rule, pointing out that digital asset platforms are different from brokers.
The industry argued that digital asset platforms are fully automated and run on a secure blockchain network, and it is not possible for them to collect tax information of the users on their platform.
Landmark move for DeFi
Anish Jain, Founder and CEO, W Chain, a Singapore-based Web3 firm, said the repealing of IRS rule by President Trump marks an important moment for the decentralised finance industry.
The decision shows a clear understanding of the unique nature of DeFi platforms and their potential for driving innovation in the financial sector, he said.
“By repealing the IRS rule on DeFi, we’re preserving the core principles of decentralisation and privacy that are fundamental to blockchain technology,” Jain said.
He said the move will undoubtedly foster a more conducive environment for technological advancement and economic growth in the digital asset space.
Sector experts said Trump’s decision to sign the first crypto bill into law is also a significant step towards maintaining the United States’ position as a leader in financial innovation.
Such actions will also ensure that the regulatory frameworks evolve alongside emerging technologies.
Easing of trade tensions aid current rally in Bitcoin
Market experts said besides repealing the US IRS tax information clause, easing of trade tensions also aided the current rally in Bitcoin.
Thakral said the surge in BTC prices shows renewed interest from institutional investors, as well as retail investors.
He said as per the data from Glassnode, US Bitcoin ETFs registered record inflows of nearly $1 billion on April 22.
Ryan Lee, Chief Analyst at Bitget Research, however, said Bitcoin’s surge to $94,000, is encountering resistance around $91,275—a level aligning with the average cost basis of short-term holders.
“This convergence suggests potential selling pressure as traders aim to break even,” he said.
Lee also said that despite the price uptick, derivatives markets reflect cautious sentiment.
“Futures premiums are subdued, and options skews remain neutral, indicating a lack of strong bullish conviction,” he said.
