The global crypto market cap was down over a per cent $2.21 trillion mark compared to the last day. The total crypto market volume dropped more than 2 per cent to $$88.42 billion.
Bitcoin, which turned 13 today, is celebrating its birthday on a dull note as the cryptocurrency has dropped about 8 per cent in the last one week.
What’s cooking in India?
Cryptocurrency platforms that are facing increased scrutiny from tax authorities for Goods and Services Tax (GST) evasion are unclear about “applicable provisions” under the country’s indirect tax regime amid regulatory uncertainty, industry executives said.
After the Goods and Services Department, which slapped a ₹40 crore GST demand on crypto exchange WazirX last month, the Directorate General of Goods and Services Tax Intelligence (DGGI) – under the ministry of finance – is scrutinizing multiple crypto firms including Buyucoin and Unocoin.
Even as the indirect tax department initiated investigations against several crypto exchanges for escaping Good and Services Tax (GST) liability, it may have also set a precedent around the categorisation of crypto assets for taxation.
Expert’s Take
A choppy trading session for Bitcoin and major altcoins with low volumes witnessed across centralised exchanges. The start of 2022 has been relatively lacklustre, adding on to the poor showing, said CoinDCX Research Team.
“With no clear direction, price action has been range-bound at best, with overall market sentiment leaning towards a slight bearish bias. Though if history were to repeat itself, it will not be long before We start seeing funds flows back into crypto,” it added.
Global Updates
A growing number of Indians are investing in cryptocurrencies despite extreme volatility and lack of regulation. But the trend is not just due to the prospect of high returns. Some took to crypto to bet on blockchain technology.
CryptoWire, the global crypto app which is a special business unit of TickerPlant, on Monday said it has launched India’s first index of cryptocurrencies, named IC15.
NFT Buzz
The value of NFT space is being increasingly acknowledged by people from the entertainment industry, with the latest purchase made by one of the most popular rappers, Eminem. He bought ‘Bored Ape Yacht Club’ for $450,000 and people have discovered that he owns 166 other NFTs.
Back home, Indian cryptocurrency exchanges seem to have taken a shine to non-fungible tokens (NFTs). At least half a dozen crypto platforms are foraying into the NFT space, assuming that it would not be outlawed as NFTs hold an underlying asset that is traded in digital form.
Tech view by Giottus Cryptocurrency Exchange
Terra is a blockchain-powered protocol that relies on fiat-pegged stablecoins to deliver price-stable global payments systems for crypto users. Its coin – LUNA – has been on a blinding run lately, going from $4 in May 2021 to over $100 in December 2021.
While LUNA looked set to be in price discovery mode, it finally faced resistance on higher time frames – particularly the trendline from its August low. A 15% rejection followed and it seems LUNA may likely look at support situated at $79 before moving ahead.
AgenciesThis support line will also have confluence with a support trendline stretching from November and should hold strength. While the next major support line is available at $65, LUNA should ideally remain above $76 to prevent a lower-high formation that may lead to further potential downside.
With an RSI (14) value dipping below the 50s and a MACD that has already had a bullish crossover, the worst may be over for LUNA in this minor correction. However, external factors such as Bitcoin’s price will continue to play a role in the short to mid-term.
Key levels:
Support: $79, $76, $65
Resistance: $93, $102
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