This year can prove to be do or die for cryptocurrency.
The year 2022 saw crypto both its top worst performance.
India has forced investors to think by imposing tax on crypto.
New Delhi. The craze of cryptocurrency has come down at the same speed as it went up. Experts believe that the situation of big cryptocurrencies in the last few years has pushed investors on the back foot. The pace of investing in crypto by High Net Worth Individuals (HNIs) has slowed down a lot. The year 2022 almost broke the back of the crypto world and the ongoing year also does not seem to be behaving any differently. After seeing a boom in 2020-21, the crypto market turned upside down in 2022.
According to a news from Moneycontrol, on November 10, 2021, the market cap of cryptocurrency was $ 3 trillion. This is its highest level ever. However, in the last week of November, the bet was completely reversed and the market capitalization of cryptocurrencies came down to $727.58 billion. Anurag Dixit, founder of the crypto asset management platform Key, explains that in 2021, institutional investors and HNIs were trying to enter the crypto market on a large scale, but now this process has become very slow. He said that a lot of reasons for this are also the developments that have come to light in the last 8 months. This includes tragedies like Terra Luna, Celsius, Alameda Research and FTX.
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floor to floor
As of January 16, bitcoin has lost almost 70 percent from its all-time high of $69,044.77. By the end of 2022, this situation was worse. By that time bitcoin had broken up to 74 percent from its highest level. If seen on an annual basis, there was a decline of 64 per cent. This was its lowest price since 2011. The same situation was with all other popular cryptocurrencies including Solana, Dodge, Shiba Inu, and Ethereum. It has come down to 91 percent from its highest level.
status of cryptocurrencies in india
In the last budget, instead of banning crypto, India imposed a 30 percent tax on the profits from its transactions. Not only this, whether there is a loss or profit in the transaction, 1 percent TDS (TDS) is fixed. Investors have come under more pressure from this. In India, you cannot avoid tax by equalizing the losses from one crypto currency with the profits from another crypto currency. While this can be done in the stock market. This means that without making crypto illegal, India has put it in a situation where investors should think 10 times before investing.
Experts believe that at least half of this year is not going to be good for cryptocurrencies. Siddharth Sogani, CEO of crypto research company CREBACO, says that bitcoin will only reach $21,000-23,000 even in the best case scenario. On the other hand, if the decline starts, it will fall to $12,000-13,000. Experts seem convinced that 2023 is going to be a do or die year for cryptocurrencies.
Tags: bitcoin, business news, business news in hindi, Cryptocurrencies
FIRST PUBLISHED : January 20, 2023, 15:20 IST