Bitcoin, Ether Fall Hard as Crypto Market Struggles With Inflation Rise

The price of Bitcoin and the wider crypto market took a harsh tumble over the past day after concerns around rising inflation in the US quickly clouded the positive market mood following last week's Bitcoin 2022 conference in Miami. In terms of value, the world's most popular cryptocurrency fell sharply over the past 24 hours, registering a 6.75 percent dip through Monday falling below the $40,000 (roughly Rs. 30 lakh) mark across global exchanges. At the time of writing, the value of Bitcoin is down by 5.84 percent in the past 24 hours and stands at $41,993 (roughly Rs. 32 lakh) on Indian exchange CoinSwitch Kuber.

On global exchanges, the price of Bitcoin stands ever so close to the $39,500 (roughly Rs. 30 lakh) mark at $39,669 (roughly Rs. 30 lakh) losing 6.22 percent in value over the past 24 hours. As per CoinGecko data, BTC has tumbled by 14.7 percent in value week-to-day.

As has been the case over the past few weeks Ether, the world's second-largest cryptocurrency had a steeper fall in comparison. At the time of publishing, Ether is valued at $3,154 (roughly Rs. 2.5 lakh) on CoinSwitch Kuber while values on global exchanges see the crypto's value at $2,968 (roughly Rs. 2.25 lakh), where the coin has seen a dip of 6.45 percent over the past 24 hours.

CoinGecko data reveals that the cryptocurrency's value has dropped by an eye watering 15.3 percent over the past week.

As per Gadgets 360's cryptocurrency price tracker, the last day has been horrible for most altcoins. The global crypto market cap witnessed a massive dip of 5.42 percent over the past 24 hours. Binance Coin, Avalanche, Polygon, Solana, Cardano, Polkadot, and Terra have all marked heavy losses over the past 24 hours. In fact, barring Monero, there's no green marker in sight.

Shiba Inu and Dogecoin, meanwhile, also took heavy losses on the day. Dogecoin is currently valued at $0.14 (roughly Rs. 11) after losing 7.21 percent over the last 24 hours, while, Shiba Inu is valued at $0.000024 (roughly Rs. 0.002), down by 6.67 percent over the past day.

"BTC extended its pullback as the buyers could not break the resistance level at$48,000 (roughly Rs. 36.5 lakh) level. BTC's support is at $37,000 (roughly Rs. 28 lakh), which can stabilise the downward trend. Other major cryptocurrencies are also running in red, sinking significantly. This downward trend in the crypto market could be due to the rising inflation and economic declines across the globe," Edul Patel, CEO and co-founder of crypto investment firm Mudrex, told Gadgets 360.

The volume of cryptocurrency trading in India has taken a hit after tax laws for digital assets went into effect on April 1. CoinDCX and WazirX among other Indian crypto exchanges have witnessed a significant drop in crypto trading volumes, a report released by Mumbai-based research firm Crebaco has claimed.

As announced by Finance Minister Nirmala Sitharaman, a 30 percent tax is being deducted from all profits generated via crypto trading in the nation. The tax laws also instruct Indian crypto users to pay one percent TDS on each crypto transaction.

The trading volumes on WazirX, ZebPay, CoinDCX, and BitBns have dropped down by 72 percent, 59 percent, 52 percent, and 41 percent respectively, the report says.

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