Trump’s Move on IRS Ruling Shakes DeFi – Will BTC Break $90,000 Resistance Today?

In a major win for the crypto industry, President Donald Trump is set to sign legislation repealing the controversial IRS ruling. That classified decentralized finance platforms as “brokers.” The ruling, originally part of Biden’s infrastructure bill, imposed strict reporting requirements on DeFi entities, sparking backlash from industry leaders. The repeal, passed by the Senate with bipartisan backing, is expected to reduce regulatory pressure on DeFi platforms. Analysts are closely watching BTC price trends, reasoning that reduced regulatory burdens could positively impact market performance. However, the long-term effects on the crypto landscape remain uncertain.

IRS Ruling Repeal: A Game-Changer for DeFi and Bitcoin

The IRS ruling introduced in 2021 under Biden’s administration expanded the definition of “broker” to include decentralized exchanges. Critics claimed that the broad classification made compliance impossible for decentralized entities. The House and Senate have now voted to repeal the rule, and President Trump has confirmed his intent to sign it into law.

The repeal signals a shift in U.S. regulatory policies toward a more crypto-friendly stance. Trump’s crypto policy advisor, David Sacks, stated that the administration aims to support blockchain innovation and reduce regulatory barriers. Market analysts believe this could boost Bitcoin price predictions, as decreased regulatory uncertainty often leads to increased investor confidence.

However, the crypto market’s reaction remains mixed. While some traders see this as a bullish sign, others caution that broader economic factors will ultimately determine BTC’s action. As the repeal moves forward, all eyes are on Bitcoin and the DeFi sector to gauge the long-term impact of this legislative change.

Bitcoin Bulls Eye $88,274.41 Breakout

Bitcoin’s market trends on March 20th displayed significant volatility, with price movements influenced by key technical signals. The day began with an upward trend, but a death cross at 2:00 UTC hinted at a possible downturn. As the price dipped into oversold conditions at 3:10 UTC and 3:35 UTC, it found temporary support at $87,029.58. A golden cross at 4:00 UTC signaled a reversal, leading Bitcoin to test resistance at $88,274.41. However, overbought conditions at 6:55 UTC and 7:45 UTC stalled further gains. By 8:05 UTC, another death cross indicated price fluctuations, followed by a sharper decline after a death cross at 11:20 UTC. 

Chart 1, analyzed by ShwetaCW, published on TradingView, March 27, 2025

Bitcoin dropped below previous support levels, establishing a new trading range with support at $85,865.41 after an oversold condition at 19:10 UTC. A golden cross at 19:35 UTC fueled a brief rally, but a death cross at 21:00 UTC signaled another dip. A golden cross at 23:40 UTC signaled an uptrend, continuing into March 27th until a death cross at 2:55 UTC suggested a reversal. According to the Bitcoin price prediction, if the decline persists, Bitcoin may break $85,860.41 support, while a rebound could push it toward the $88,274.41 resistance level.

BTC’s Next Move: Support Retest or Breakout Ahead?

The repeal of the IRS ruling brings relief to DeFi platforms, fostering a more favorable regulatory environment. BTC price remains volatile, with key support at $85,860.41 and resistance at $88,274.41. If selling pressure increases, it may break below support, signaling further decline. However, if buyers regain momentum, the price could rally past resistance, confirming an upward trend. Market sentiment remains cautious as traders react to regulatory shifts. Bitcoin price prediction suggests that the coming days will be crucial in determining the next move. While DeFi platforms closely monitor the impact of the IRS ruling on market trends.