The bearish trend in the crypto market continues. The decline of Bitcoin and other cryptocurrencies indicates that the market will continue to suffer. The recent sell-out has lowered the market value cap, which is currently about $1.05 trillion. Nithin Kamath, founder and CEO of Zerodha, thinks that Indian crypto investors accidentally got lucky owing to the TDS and crypto taxation, first announced in the budget session of 2022 in February. On June 10, Nithin Kamath tweeted:
‘I think many Indian crypto investors accidentally got lucky due to TDS & Tax on Crypto announcing this budget in Feb. Activity & participation dropped significantly immediately. If not, many could have potentially been trapped trying to buy the dip & then averaging down. ’
I think many Indian crypto investors accidentally got lucky due to TDS & Tax on Crypto announcement this budget in Feb. Activity & participation dropped significantly immediately. If not, many could have potentially been trapped trying to buy the dip & then averaging down. 1/3 pic.twitter.com/4SKmo8cvKx
— Nithin Kamath (@Nithin0dha) June 11, 2022
Zerodha is an Indian digital trading company that started its operations in 2010. It aims to provide easy access to Indian investors in terms of cost, support, and technology. Currently, it is India’s largest stock broker in terms of active retail clients.
The Indian crypto tax bill was signed into law on April 1. According to the law, Indian investors have to pay a capital gains tax of 30% on crypto transactions. Investors were also subject to a 1% tax deduction(TDS) at the point of sale. The TDS was restricted to Rs 50,000. It must be paid regardless of whether profits or losses are realised during crypto transactions, making it necessary to include it in annual income tax forms. The taxes made it difficult for many young investors to invest in crypto, which saved them from the recent market crash.
Many twitter users agreed with his statement. One user named Varun Deshpande replied:
It’s interesting that Indian regulators time the market better than most traders. Last time in early 2018 just before the bear market and now again in early 2022.
— Varun Deshpande (@thebitsian) June 11, 2022
Other user_Arun added:
‘Absolutely. Infact Crypto taxation announcement is a blessing in disguise for many Indians. With high US inflation numbers just announced crypto will go down further.’
As losses have worsened, the entire crypto market has continued to lose value. According to Coinmarketcap, the value of cryptocurrencies has drastically declined in the last 24 hours. At the time of writing (11:40 am IST), Ethereum (ETH) is trading at 1,329.42 down by 7.73%, Bitcoin (BTC) at $25,308.34 down by 7.48%, Solana (SOL) at $27.84 down by 13.01%, and Shiba Inu (SHIB) down by $0.000008163 4.89% in the last 24 hours.
Read more:
- India’s GST council gearing up for cryptocurrency taxes discussion in June meet
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