Bitcoin price fell below $39,000 today after breaking the level for the first time in two weeks. The world’s most popular and largest cryptocurrency by market cap rose 0.40 percent to $38,699.62. Bitcoin is down more than 16 percent since the beginning of this year (year-to-date or YTD), while it has nearly halved from its all-time high of $69,000 in November after 50 percent. Expectations of tightening monetary policy helped fuel a bearish downturn in cryptocurrency assets last month.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, rose more than 1.68 percent to $2,782.88, according to Coinmarketcap.com. Similarly, Binance Coin gained 1% to $382.
The price of Dogecoin also rose nearly 1% to $0.14, while Shiba Inu traded more than 2% higher at $0.000022. The performance of other cryptos also improved as the prices of XRP, Stellar, Avalanche, Cardano, Solana, Polygon, Terra traded profitably in the past 24 hours.
Tax on crypto-related transactions
Recognizing that much of the population is involved in crypto-related transactions, Finance Minister Nirmala Sitharama in her budget speech yesterday pulled crypto tax out of the shadow of ambiguity. The government has decided to put virtual digital assets under the tax scanner by levying a 30 percent tax on their online sales and purchases.
The FM also specified that an additional 1 percent TDS will also be levied on such crypto transactions that exceed a certain threshold, establishing a trail of details. The follow-up amount or virtual digital asset gift is taxable in the hands of the recipient. In addition, losses incurred on the transfer of such assets could not be written off against other income, with no allowance being allowed except for the acquisition costs.
“With the 2022 budget, India came a step closer to accepting and potentially legalizing digital assets in the country by making it taxable. Bitcoin crossed $39,000 and has been gaining steadily for the past ten days. The hourly time frame can be seen rising along with an ascending triangle pattern. The RSI for Bitcoin has passed the 40 levels and appears to be moving away from the oversold zone. The next resistance is expected at the $42,000 level,” WazirX said in a note.
American internet entrepreneur and co-founder of Reddit Alexis Ohanian has raised $776 million through his venture firm in two new funds, which he expects to invest in crypto startups. Ohanian told the Wall Street Journal that crypto startup currently accounts for about 40 percent of 776’s portfolio, including metaverse game Axie Infinity, crypto tax manager Coin Tracker and Bitcoin rewards app Lolli. However, by the end of this year, crypto will make up the bulk of this portfolio.
Here are the top 10 cryptocurrencies and their prices as of February 2, 2022 (data from coinmarketcap.com at the time of publishing this article)
Bitcoin $38,699.62 or 0.40 percent gain in the last 24 hours
Ethereum $2,782.88 or 1.86 percent gain in the last 24 hours
Cardano $1.10 or 4.28 percent gain in the last 24 hours
Tether $1.00 or 0.00 percent gain in the last 24 hours
Terra $52.25 or 2.96 percent loss in the last 24 hours
XRP $0.6269 or 0.66 percent gain in the last 24 hours
Solana $111.17 or 4.36 percent gain in the last 24 hours
Avalanche $73.80 or 6.31 percent gain in the last 24 hours
Binance $1.00 or 0.11 percent gain in the last 24 hours
Read all the latest news, breaking news and general elections here.