Florida is waving in the cryptocurrency world as it is getting closer to becoming the first state to eliminate capital gains taxes

The new bill proposed by Florida plans to exempt capital gains taxes on Bitcoin, XRP and traditional stock investments. If the bill passes, it will mark the first time at the national level the capital gains tax on digital assets is lifted, which is significantly different from federal tax policy.

Analysts say Florida has set off a wave in the cryptocurrency space as it approaches becoming the first state to remove the capital gains tax on Bitcoin, XRP and stocks, which could drive the BTC price to $135,000.

Florida could be the first state to cancel the tax on Bitcoin, XRP and stock capital gains

The new bill proposed by Florida aims to exempt capital gains taxes on Bitcoin, XRP and even traditional stock investments, aiming to position the state as a national cryptocurrency center.

The bill remains under review by the state legislature, which will mark a significant divergence from federal tax policy and could have a significant impact on the cryptocurrency market.

Key Highlights of the Florida Proposal:

The proposal sparked discussion among supporters and critics. Proponents believe that the removal of capital gains tax will attract retail and institutional investors, promote economic activity and generate income for the country through other taxes.

However, critics warn that this could complicate tax compliance for multi-state residents and businesses and make a difference from federal regulations.

Bitcoin price could hit $135,000 in 100 days as key volatility indicators remain bullish

Market analysts remain optimistic about Bitcoin’s price journey as Florida flirts with crypto-friendly tax reforms. Recent data show that key volatility indicators point to a potential surge to $135,000 over the next 100 days.

Keith Alan, a crypto analyst from Material Indicators, stressed that despite recent market volatility, Bitcoin’s “Volatility Peacock Pivot” measures the contraction and expansion of the price band and remains bullish.

"There is still no sign that the volatility peacock pivot will change, nor is there a 100-day trip from the $135,000 Bitcoin target. We are still 90 days from the De la Rue Pivot, which may indicate that the short-term price will drop to around 90k, which is part of the normal market correction, part of the normal market correction before any parabolic breakout."

Factors supporting the $135K Bitcoin price target:

Allen further noted that short-term price volatility is likely part of a normal market correction before any parabolic breakout, potentially dropping to $90,000.

Bigger prospects: Policy in line with price action

Florida's move to eliminate the Bitcoin capital gains tax could further boost bullish momentum by incentivizing more investment in digital assets. Combining favorable market indicators, the synergy between policy support and technical signals draws a promising picture of Bitcoin’s medium-term outlook.

In a broader context:

This convergence of technology and fundamental factors suggests that Bitcoin’s next bull market may already be in motion, laying the foundation for potential growth in the coming months. However, it is important to note that ongoing macroeconomic uncertainty and regulatory shifts may affect this trajectory.

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