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 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 $911.52 billion mark, down more than 2 per cent in the last 24 hours. However, the total cryptocurrency trading volume was up by over a per cent at $57.31 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.
Global Updates
- CEO Whit Gibbs and Chief Financial Officer Jodie Fisher have resigned, effective immediately, from bitcoin mining hosting and brokerage services firm Compass Mining, the company said in an emailed statement.
- Canada-based investment firm Cypherpunk Holdings has dumped all of its bitcoin and ether holdings to ride out the current market risks.
- CoinFLEX CEO Mark Lamb claims noted crypto investor Roger Ver owes the physical futures crypto exchange $47 million in USDC. Lamb made his allegation public Tuesday on Twitter, shortly after Ver denied “some rumors” he was involved with the default.
Tech view by BuyUcoin cryptocurrency exchange
SHIB price dipped even after 400 trillion tokens were burned. SHIB growth has been fueled mainly by speculation and supportive tweets by Elon Musk. Cypto.com has also removed SHIB from its earn program which may have hurt the investor sentiment around the meme coin and resulted in a 5 per cent drop in its prices during the day trade.
The growth momentum of SHIB will continue if it finds a real-world use case or is integrated into the global payment system. As of now, SHIB will witness price fluctuations mainly driven by speculations.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)
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