Japan's Crypto Tax Cut and Global Market Shifts

Japan's parliament approved a reform that classifies digital assets as financial products and lowers the tax on crypto gains to a fixed 20% rate, replacing the previous progressive system that could reach 55%. The new regime, effective from 1 January 2028, also introduces a three‑year loss carryforward and harsher penalties for market abuse, while paving the way for crypto‑ETF listings.

Bitcoin traded around $64,860, and the options market showed a shift in the most popular call strike from $80,000 to $70,000, with $1.63 billion open interest at the $70 k level, suggesting analysts now view $70‑72 k as the short‑term target.

XRP hovered near the $1.12 resistance line, with large‑holder (whale) activity adding roughly 70 million XRP and Binance’s reserves at a multi‑year low, while technical indicators remained neutral.

A broader market snapshot reported a total crypto market cap of $2.304 trillion, 24‑hour volume of $65.7 billion, and over 77,000 investors hit by liquidations, 59% of which were short positions, the most liquidated asset being Ethereum.

Prediction‑market platforms recorded a record Q2 nominal volume of $113.8 billion, driven by sports and political contracts. Binance held a 38.7% spot‑exchange share, while regulatory scrutiny grew, especially in the United States, amid rising DeFi security incidents.