Will the digital dollar and tax reduction policy in July ignite a new wave of BTC and ETH enthusiasm!!

This month, the cryptocurrency market continues to heat up, with Bitcoin $BTC surpassing 107,000 USDT, and Ethereum $ETH breaking through 2,600 USDT. The market is full of expectations for favorable policies in July. The possible digital dollar policy and tax reduction measures from the U.S. may become catalysts for the price surge of BTC and ETH, sparking a new round of investment enthusiasm.

Digital Dollar: A New Opportunity for the Crypto Market?

The digital dollar, as a potential form of the U.S. CBDC, has attracted significant attention. Although the details of the policy have yet to be clarified, discussions online suggest that if the digital dollar framework in July supports blockchain technology or interoperates with the DeFi ecosystem, it could greatly boost market confidence. Bitcoin, as 'digital gold', may rise further due to safe-haven demand, with analysts predicting its price may surge even higher!

Ethereum, due to smart contracts and DeFi applications, may see more adoption in the payment and settlement scenarios of the digital dollar, with prices expected to break through 3,000 USDT. The continuous net inflow of funds into the U.S. spot ETH ETF for 17 days (with total assets reaching $10.65 billion) also indicates institutional optimism for ETH in the long term.

However, if the policy imposes strict regulations on DeFi, the short-term volatility risk should not be overlooked.

Tax Reduction Policy: A Catalyst for Capital Inflow

At the same time, the market expects that the U.S. may introduce tax reduction policies in July, particularly concerning corporate tax or capital gains tax. This would increase the disposable income of investors.

Bitcoin, being a popular choice for corporate asset reserves (for example, Japan’s Metaplanet holding over 10,000 BTC), may see prices soar due to corporate accumulation.

Ethereum will benefit from capital inflow into the DeFi and NFT markets, and performance improvements will further enhance market optimism. If tax reductions are combined with interest rate cuts, BTC and ETH may break the four-year cycle and welcome sustained growth.

Despite the optimistic outlook, uncertainties remain in the market in July. If the digital dollar restricts cryptocurrencies, or if the tax reduction leads to rising inflation expectations, short-term price fluctuations may occur. However, in the long term, Bitcoin’s fixed supply and Ethereum’s ecological advantages give them significant potential under favorable policies. Investors need to pay attention to the dynamics of the Federal Reserve and SEC, and make cautious decisions considering geopolitical factors such as U.S.-China trade negotiations.