Cryptocurrency

In the Union Budget 2022-23, the government clearly defined VDAs such as cryptocurrencies and NFTs under the Income Tax Act for the first time

Extreme volatility is nothing new to cryptocurrencies, but Bitcoin's slump from a peak of $126,000 in October last year comes despite the backdrop of a crypto-friendly White House and surging adoption

Crypto markets have remained under pressure since October last year, after Bitcoin scaled its peak and has since been on a declining trajectory

Cryptocurrencies have been on shaky ground ever since a brutal series of liquidations in October that sapped market confidence

Altcoins followed a similar risk-off trajectory. Ethereum, BNB and Solana reflected weaker bid depth during the pullback

The data will be shared under the OECD-led Crypto-Asset Reporting Framework, enabling automatic exchange of crypto transaction details between tax authorities

Contracts on Polymarket, a decentralized prediction platform, now imply an 82% chance that Bitcoin will fall to $65,000 this year, a level roughly 13% lower than today's $73,200

The framework includes Rs 50,000 fine for furnishing inaccurate information or failing to rectify inaccuracies

Until macro stability returns and ETF inflows resume, crypto markets, analysts believe, are likely to remain defensive

The Finance Bill introduces penalties for delayed or inaccurate crypto transaction reporting, including a ₹200-per-day fine and a ₹50,000 penalty for uncorrected errors

Bitcoin slipped below the $80,000 mark after failing to hold above $89,000, with the decline exacerbated by thin weekend liquidity

Bitcoin fell as much as 3.9 per cent to $81,102 Friday in Singapore, its weakest since Nov 21, extending a rout that gathered pace overnight

Macro conditions also weighed on sentiment. Analysts noted that risk appetite softened across global markets as investors reassessed the outlook for monetary easing

Amid this, more than $1.5 billion in outflows from spot Bitcoin ETFs this week, analysts said, point to a near-term moderation in institutional risk appetite

The survey, conducted ahead of the 2026 Union Budget, gathered insights from close to 5,000 respondents, highlighting widespread discontent over the current taxation framework

The downturn followed broader weakness in global equities after renewed trade tensions between the US and Europe, triggered by President Donald Trump's latest tariff threats

Trump said over the weekend that he would impose a 10 per cent tariff on goods from 8 European nations starting Feb 1, rising to 25 per cent in June unless there's a deal for a 'purchase of Greenland'

The rally, analysts said, appears driven by spot accumulation and improving risk appetite, with on-chain data showing liquidations of short positions as Bitcoin moved above key resistance levels

Overall, muted capital inflows, analysts said, are likely to keep ETH range-bound, while Bitcoin's relative strength continues to support broader sentiment, though there is no clear breakout signal

The directives also discourage Initial Coin Offerings (ICOs) and Initial Token Offerings (ITOs), equivalent to IPOs in stock markets, by the exchanges