New Delhi: After some decent gains, the cryptocurrency market took a breather as major crypto tokens traded flat. Trading was light as investors looked for signs that Bitcoin’s downward spiral has reached an end and that the largest cryptocurrency by market cap is poised to enter a new bull cycle.
With the exception of Solana and Polkadot, all other eight of the top 10 digital tokens traded with a positive bias during early trade on Monday. Cardano, on the other hand, surged over 12 percent to become the fifth largest token by market cap.
The global crypto market cap remained largely unchanged from the previous day at $2.07 trillion. However, the total crypto market volume increased by 5 percent to $64.30 billion.
Investors looking for clues as to where Bitcoin is headed next should take a look at what the options market is signaling. The world’s largest cryptocurrency rallied last week after falling below $40,000.
What is cooking in India
The government may consider charging TDS/TCS on sales and purchases of cryptocurrencies above a certain threshold in the upcoming budget and such transactions should be included in the scope of specified transactions for reporting purposes to the Income Tax Authorities, Nangia Andersen LLP Tax Leader Aravind, said Srivatsan.
Also, a higher tax rate of 30 percent should be levied on revenue from cryptocurrency sales, similar to winnings from lotteries, game shows, puzzles, etc., he said.
On September 12, 2021, Cardano deployed the Alonzo upgrade. The Alonzo upgrade gave smart contracts capabilities to the Cardano network. Simply put, this meant that Cardano could see a stream of dapps on its network, WazirX Trade Desk said.
In anticipation of the upgrade, Cardano’s ADA hit an all-time high of 3.12 USDT, he added. However, no dapps were released, causing ADA’s price action to drop more than 60% over 4 months.
But there could be a reversal for Cardano as Sundaeswap, a decentralized exchange with a large following, plans to launch its mainnet in 3 days (January 20).
“With the launch of the Dex, people will be able to see the power of Cardano and there could be a massive price spike. In short, we should expect some volatility,” WazirX added.
According to BitPay Inc, one of the largest crypto payment processors in the world, consumers and businesses are increasingly starting to use digital tokens other than Bitcoin for purchases.
Rationalization of NFTs
Cryptomania has been at a peak for more than a year. Cryptocurrencies like Bitcoin and Ethereum have increased in value.
Crypto-based assets like NFTs have caught on. Jack Dorsey, a Twitter founder, recently renamed one of his companies Block in honor of blockchain, the distributed ledger system that powers digital currencies. Melania Trump has auctioned off her own NFTs.
But for some, the crypto craze has gone too far and too fast. Skeptics argue that cryptocurrencies and related assets like NFTs are digital pyramid schemes whose prices are artificially inflated beyond their true value.
Tech View by Proasset Exchange
On November 10, 2021, after Bitcoin hit a double top at $69,000, a sell-off started, but a violent sell-off came after there was a downside breakout of the channel and it is currently trading in the support zone ($42712 – $39811) and below downtrend line. Until there is a valid upside breakout for this downtrend line, we will see price weakness.