For Bitcoin, $20,000 is the key psychological level. If it is breached substantially, the bear grip in the crypto market is likely to tighten and crypto winter may deepen further.
Barring the dollar-pegged USD Coin and Tron, all of the other crypto tokens were trading in the red on Wednesday. Shiba Inu and Solana plunged about 5 per cent each, whereas Dogecoin dropped over 3 per cent.
The global cryptocurrency market cap was trading at the $913.70 billion mark, dropping more than a per cent in the last 24 hours. However, the total cryptocurrency trading volume was flat, up by a per cent at $56.35 billion.
What’s cooking in India
The income tax department on Tuesday said both buyers and sellers will have to withhold taxes for transactions involving an exchange of one virtual asset for another.
Issuing a further set of clarification, the Central Board of Direct Taxes (CBDT) also said according to section 194S of the I-T Act, the buyer will have to deduct tax in a peer-to-peer transaction of virtual digital assets (VDA).
Expert take
The looming fear of Three Arrow Capital defaulting on its loan has come true. Voyager Digital, a digital asset brokerage, reported that the fund has failed to repay a loan of $350 million in USDC, U.S. dollar-pegged stable coin, and 15,250 bitcoins, said WaxirX Trade Desk.
“The effects of default will be much more concerning if there is a decrease in liquidity on Voyager. Voyager has already taken action to fight this concern,” it added.
