French MPs advance measure to tax crypto as ‘unproductive wealth’

💡 DMK Insight

France’s new tax on larger crypto holdings could shake up market sentiment significantly. This amendment categorizes substantial crypto assets as ‘unproductive wealth’, which means investors might face increased tax liabilities. For traders, this could lead to a sell-off as individuals and institutions look to minimize their exposure ahead of potential tax implications. If this trend spreads to other EU nations, we could see a broader impact on crypto markets, especially if investors start reallocating to more tax-friendly jurisdictions. Keep an eye on how this affects major cryptocurrencies like Bitcoin and Ethereum, particularly if they break below key support levels. The daily charts are showing some weakness, and a dip could trigger further selling pressure. On the flip side, this could create buying opportunities if prices drop significantly, especially for long-term holders who see value at lower levels. Watch for market reactions in the coming weeks as traders digest this news and adjust their positions accordingly.