Barring the dollar pegged USD coin, all other nine out of top-10 digital tokens were trading higher at 8.30 am IST. Terra and Cardano zoomed 10 per cent each, followed by a 6 per cent rise in Solana.
The global crypto market cap was up by more than 3 per cent to $2.07 trillion mark compared to the last day. The total crypto market volume jumped over 14 per cent to $100.44 billion.
What’s cooking in India
The government has sought opinion from senior tax advisors on whether the income earned from trading or investing in cryptocurrencies could be treated as business income as against capital gains from this year onwards, said sources.
The move could substantially increase the tax burden of crypto investors. The government is looking to fine-tune the definition of income and gains specifically for crypto assets in the upcoming budget.
No cryptocurrency advertisement would compare cryptos with other regulated assets, claim that ‘understanding crypto products is so easy that consumers don’t have to think twice about investing,’ or feature cryptos as a solution to any ‘money problem.’
Global updates
Changpeng “CZ” Zhao, who runs the crypto exchange Binance, has joined the ranks of the world’s top billionaires, with an estimated net worth of at least $96.5 billion, according to new calculations from the Bloomberg Billionaires Index.
Zhao’s projected fortune now is just below that of Oracle founder Larry Ellison and surpasses that of Mukesh Ambani, the Indian tycoon whose fortune has also soared over the last two years.
In cryptocurrencies beyond Bitcoin, the Near Protocol’s NEAR token rose on Wednesday to an all-time high on signs the up-and-coming blockchain might be undervalued as it attracts more activity.
Some analysts warned that NEAR might be looking frothy on some metrics and that bullish bets on another popular blockchain token, Fantom’s FTM, have become a ‘crowded’ trade.
Expert take
The crypto market rebounded after a sluggish start to the year with Bitcoin rising to its highest point in a week. Altcoins followed a similar trend.
The crypto market’s recovery is likely due to US inflation hiking to a 39-year high and the greenback slumping, sending the economy into a state of flux, with Asia Pacific markets opening mixed, said CoinDCX Research Team.
“As investors hedge their bets on crypto, the digital asset once again reclaimed its status as a safe-haven asset. With US inflation showing more staying power, we can anticipate the crypto market to track its bullish return,” it added.
Tech View by Giottus Crypto Exchange
Launched in June 2017, Chainlink is a decentralized oracle platform that connects smart contracts on blockchains with external data feeds. It is the most popular tool of its kind, given it was the first to offer a secure, reliable method for blockchains to connect with real-world data.
Chainlink’s token – LINK – rose from $11 to over $53 in 2021, before closing just below $20. In 2022 so far, it has been running somewhat at odds with the rest of the market – appreciating in times of slow market movement while stalling when others rally.
Since December, LINK has formed a clear, well-respected, ascending parallel channel. LINK barely tested the bottom of the channel until it was well into January, indicating a consistent bullishness that it is yet to shed. LINK did lose the parallel channel around the onset of the new year, but this turned out to be temporary.
LINK is currently trading at support near the .236 retracement of its rise, which is likely to converge with the middle of the parallel channel in the coming days. This confluence should provide the fuel for another rise to $30 and beyond. Of course, LINK will need to overcome resistance at the rejection from its recent high at $28.6, which should not be a major challenge.
Major levels
Support: $26.1, $24.5, $23.2
Resistance: $28.6, $29.1
