Bitcoin price today went below $39,000 after breaching the level for the first time in two weeks. The world’s most popular and largest cryptocurrency by market cap was up 0.40 per cent at $38,699.62. Bitcoin has slipped more than 16 per cent since the start of this year (year-to-date or YTD), whereas it has nearly halved from its all-time high of $69,000 hit in November past 50 per cent. Expectations of tightening monetary policy helped spur a bearish downturn last month in cryptocurrency assets.
On the other hand, Ether, the coin linked to ethereum blockchain and the second-largest cryptocurrency, rose more than 1.68 per cent to $2,782.88, as per Coinmarketcap.com. Similarly, Binance Coin gained 1% to $382.
Dogecoin price also jumped nearly a per cent to $0.14 whereas Shiba Inu was trading more than 2% higher at $0.000022. The performance of other cryptos also improved as XRP, Stellar, Avalanche, Cardano, Solana, Polygon, Terra, prices were trading with gains over the last 24 hours.
Tax on Crypto-Related Transactions
Acknowledging that a large segment of the population is involved in crypto-related transactions, Finance Minister Nirmala Sitharama in her Budget speech yesterday pulled crypto taxation from the shadows of ambiguity. The government has decided to bring virtual digital assets under the tax scanner by levying a 30 per cent tax on their sale and purchase online.
The FM also specified that an additional 1 per cent TDS will also be levied on such crypto transactions that exceed a certain threshold, thereby establishing a trail of details. The subsequent amount or the virtual digital asset gift will be taxable in the hands of the recipient. Additionally, losses incurred during the transfer of such assets could not be written off against any other income, with no deduction provision allowed except that of cost of acquisition.
“With the Budget 2022, India moved a step closer to accepting and potentially legalizing Digital Assets in the country by making it taxable. Bitcoin crossed the $39,000 mark, steadily gaining over the last ten days or so. The hourly time-frame can be seen rising along with an ascending triangle pattern. The RSI for Bitcoin has edged over the 40 levels and seems 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 Reddit co-founder Alexis Ohanian has raised $500 million across two new funds via his venture firm 776, which he expects to invest in crypto startups. Ohanian told the Wall Street Journal that crypto startup currently account for about 40 percent of 776’s portfolio, including metaverse game Axie Infinity, crypto tax manager Coin Tracker, and Bitcoin rewards app Lolli. However, crypto “will be the majority of this portfolio by the end of this year.”
Here are the top 10 cryptocurrencies and their prices on February 2, 2022 (data from coinmarketcap.com at the time of publishing this article)
Bitcoin $38,699.62 or 0.40 per cent gain in the last 24 hours
Ethereum $2,782.88 or 1.86 per cent gain in the last 24 hours
Cardano $1.10 or 4.28 per cent gain in the last 24 hours
Tether $1.00 or 0.00 per cent gain in the last 24 hours
Terra $52.25 or 2.96 per cent loss in the last 24 hours
XRP $0.6269 or 0.66 per cent gain in the last 24 hours
Solana $111.17 or 4.36 per cent gain in the last 24 hours
Avalanche $73.80 or 6.31 per cent gain in the last 24 hours
Binance $1.00 or 0.11 per cent gain in the last 24 hours
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