Huge Fall In The Market Value Of Crypto Assets
Huge fall in the market value of crypto assets, a loss of about $ 800 billion last month.
According to the data site CoinMarketCap, the market cap of crypto assets lost around $800 billion last month.
On Tuesday, it fell to a low of $ 1.4 trillion. This is also because the tendency to invest in riskier assets has reduced after the end of the easy monetary policy.
Investors have taken a stance to avoid it. Bitcoin accounts for almost 40% of the cryptocurrency market and hit a 10-month low on Tuesday.
It dropped back to $31,450 six days after touching $40,000. It was down more than 54% from its November 10 all-time high of $69,000.
Equity markets are witnessing a slump on fears of an aggressive hike in interest rates across the world to offset decades of high inflation.
Simultaneously, the prices of crypto assets have also declined.
According to CoinMarketCap, the total crypto market cap stood at $2.2 trillion on April 2, well below its all-time peak of $2.9 trillion in early November.
“Bitcoin is highly correlated to macroeconomic conditions, which suggests that the road ahead may, unfortunately, be rocky, at least for the time being,” blockchain data provider Glassnode said in a note.
Huge fall in the market value of crypto assets: Cryptocurrency may attract 28% GST in addition to 30% tax in India.
The Goods and Services Tax (GST) Council is considering levying 28 percent GST on cryptocurrencies.
According to a media report, the GST Council may discuss the proposal to tax cryptocurrencies in the upcoming meeting. The date of the meeting has not yet been decided.
The proposed 28 percent GST is expected to be in addition to the 30 percent income tax on income from crypto-asset transactions.
Explain that in the Union Budget 2022-23, Finance Minister Nirmala Sitharaman had proposed a 30 percent tax on income from the transfer of virtual digital assets.
The new rules have come into effect from April 1.
According to the new rules, profits from all virtual digital assets, including cryptocurrencies, will be taxed at 30 percent.
Gains from virtual digital assets including cryptocurrencies are taxable even if the total income of the taxpayer is less than the limit of Rs 2.5 lakh.
The imposition of 28 percent GST will result in heavy taxation on cryptocurrencies.
This will bring cryptocurrencies on par with casinos, betting, and lotteries as far as the level of taxation are concerned.
