Cryptocurrency prices witnessed a marginal drop on Sunday with Bitcoin price today nudging to trade right around the $45,000 level. The digital token fell over 1.2% to $45,911. The world’s largest and most popular cryptocurrency is down about 2% in 2022 (year-to-date or YTD) so far. It is about 30% far away from its record high of near $69,000 it had hit in November last year.
Additionally, the second-largest cryptocurrency in terms of market capitalization Ethereum too witnessed at drop of -3.1% to $3,438. Meanwhile, dogecoin price declined by more than 7% to $0.138296, whereas Shiba Inu was also trading over -2.1% lower at $0.000025.
This comes at a time when the performance of other digital tokens also seemed to be tilted downward, with Solana, Polygon, Litecoin, Stellar, Cardano trading lower over the last 24 hours. Meanwhile, the global cryptocurrency market capitalisation was above the $2 trillion mark even as it tanked to $2.18 trillion, more than 3% change in the last 24 hours, as per CoinGecko.
The global cryptocurrency market capitalization today is $2.24 trillion, a -1.2% change in the last 24 hours. Total cryptocurrency trading volume in the last day is at $125 billion. Bitcoin dominance is at 39% and Ethereum dominance is at 18.5%.
In a related development, when the Indian government unveiled a plan to tax crypto assets in February, it was the 30% rate on income from digital-asset investments that grabbed headlines. But it’s a different levy that has the industry warning of a potentially destabilizing liquidity crunch.
Along with the capital gains charge, the finance ministry announced a 1% tax deductible at source, or TDS, on all digital-asset transfers above a certain size, starting July 1. No other country imposes such a tax on crypto, according to Anoush Bhasin, founder of crypto asset tax advisory firm Quagmire Consulting.
Crypto-exchange executives, lawyers and tax analysts warn that the TDS will suck liquidity out of the market by forcing high-frequency traders to dramatically curtail their trading. Combined with the government’s decision not to permit offsetting of trading losses in digital assets, it threatens to accelerate an exodus of crypto companies and workers from India, they say.
(With inputs from agencies)
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