On 31st of March 2022, the crypto prices fell drastically as tax imposition on digital assets was announced to be coming into effect from 1st of April 2022. The market was blooming well and there had been many successful trade gains until afternoon but then the market suddenly began to fall causing the graphs to steep down much lower than average. On an average the prices of almost all cryptocurrencies fell by more than 12% hitting both new and old tokens alike.
The most affected crypto coins involved the Litecoin which dropped from about 10,000 INR to 9000 only and Zcash falling to 9,300INR from about 15,000INR. More other coins suffered similar losses like ENS, OGN, SUSHI etc. Prices of Solana and bakery token however continued rising with Solana rising more than 60% of its price over this week. Bitcoin gained 5% while Ethereum fell by 3%.
Why did crypto prices dip so much?
Though cryptocurrencies are highly volatile digital assets and no good cause can be attributed to its rise and fall but it was most probably due to the Indian tax imposition on Crypto's and NFT's. The traders who wanted to save taxes on their gains started to plunge out their investments in hurry causing the prices to dip.
In an important step believed to bring cryptocurrencies and non-token tokens (NFTs) under the tax net, Finance Minister Nirmala Sitharaman on Tuesday announced a 30 per cent tax on any revenue from digital asset transfers, stating that it does not. deductions and exemptions will be allowed.
Gifts should be taxed at the hands of the recipient, he said, adding that there would also be a 1% deductible source tax (TDS) on payments made through the transfer of digital assets. It was also announced that any losses incurred in trading those digital assets will not be offset by any other profits.
Aftermath:
The fall in prices may have caused a lot of people to lose in their investments but he markets are plunging back again. It may take a while for may cryptocurrencies reach back their former value again but some coins are already speeding p in the process. The best thing to do in such situation will be to hold on to the investment even if it may take a while to get the value back.
Posts
0 Comments