Cryptocurrencies Continue To Struggle; Cardano, Polygon Defy Trend

As per Coinmarketcap.com, the global crypto market cap currently is placed at $2.05 trillion, a 0.59% decline in comparison to the previous day. The total volume in the space has however registered an increase by 6.56% over the last 24 hours to $65.94 billion.

At the time of writing this copy at around 10:15 am (IST), crypto prices have languished with most cryptos trading in the red barring a few. Bitcoin, the largest digital token by market cap, last traded down by 1.6 percent at $42,416. Likewise, Ethereum traded lower. Of the 20 top assets list compiled by Coindesk, Cardano, Polygon and Litecoin traded with gains of up to 6.5 percent.

Trading in cryptocurrencies has been weak as investors await cues that the downtrend for Bitcoin has come to an end and it is all set to begin its upward run.

The crypto market has been seeing correction for some time now as the Omicron variant of coronavirus rages and several businesses are facing supply chain problems together with increasing raw material cost. The US central bank during the last week reported inflation at 7%, which is a 40-year high figure.

Cryptocurrency -India context

In the upcoming Budget 2022-23, the government may levy TDS/TCS on crypto trading above a specified threshold. Further as per an expert quoted in a leading business daily, such transactions should be included in a set of specified transactions for reporting to the income tax department. Also, a higher tax of 30% should be charged on the income from the sale of cryptocurrency, he added.

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