Will a potential US income tax cut impact the crypto market? An analysis explores how this proposed change could affect prices and investor sentiment. New data suggests that cryptocurrency prices are slowly recovering from their recent lows, but remain fragile. A possible US income tax cut is being considered by former President Donald Trump as a way to replace existing taxes generated from tariffs. While tariffs add cost to goods imported by consumers, the potential removal of income tax may increase consumer spending. This could potentially lead to increased crypto investment as people have more disposable income. The article explores this impact on the crypto market, analyzing recent job data and Fed rate cut expectations. It also highlights on-chain data revealing a slowing down in selling pressure, suggesting cautious optimism for the future of the crypto market. The outcome of December’s economic updates and government actions will likely have significant consequences for the crypto market.