Except for the dollar-pegged USD coin, the other nine digital tokens out of the top 10 were trading higher at 8:30 a.m. IST. Terra and Cardano climbed 10% each, followed by a 6% rise in Solana.
The global crypto market capitalization increased by more than 3% to $2.07 trillion from the last day. Total crypto market volume jumped over 14% to $100.44 billion.
What’s cooking in India
The government has sought advice from experienced tax advisers on whether income from trading or investing in cryptocurrencies could be treated as business income versus capital gains from this year, sources said.
This decision could significantly increase the tax burden for crypto investors. The government is looking to refine the definition of income and gains specifically for crypto assets in the upcoming budget.
No cryptocurrency advertisement would compare crypto to other regulated assets, claim that “understanding crypto products is so easy consumers don’t have to think twice about investing,” or would present cryptos as a solution to any “money problem”.
Changpeng “CZ” Zhao, who runs 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 is now just below that of Oracle founder Larry Ellison and surpasses that of Mukesh Ambani, the Indian tycoon whose fortune has also skyrocketed in the past two years.
In cryptocurrencies beyond Bitcoin, the Near Protocol’s NEAR token hit an all-time high on Wednesday on signs that the up-and-coming blockchain may be undervalued as it attracts more activity.
Some analysts have warned that NEAR might look frothy on some metrics and that bullish bets on another popular blockchain token, Fantom’s FTM, have become “crowded” trading.
The crypto market rebounded from a slow start to the year, with Bitcoin hitting a high within a week. Altcoins followed a similar trend.
The rally in the crypto market is likely due to US inflation rising to a 39-year high and the greenback collapsing, throwing the economy into a state of flux, with a mixed market open of Asia-Pacific, the CoinDCX research team said.
“As investors hedge their crypto bets, the digital asset has once again reclaimed its status as a safe-haven asset. With US inflation showing more resistance, we can anticipate the crypto market to follow its comeback bullish,” he added.
Technical view by Giottos Crypto Exchange
Launched in June 2017, Chainlink is a decentralized oracle platform that connects smart contracts on blockchains with external data streams. It is the most popular tool of its kind, given that it was the first to offer a secure and reliable method for blockchains to connect to real-world data.
Chainlink’s token – LINK – rose from $11 to over $53 in 2021, before closing just below $20. So far in 2022, it has operated somewhat at odds with the rest of the market – appreciating during market downturns while stagnating when others recover.
Since December, LINK has formed a clear and respected ascending parallel channel. LINK barely tested the bottom of the channel until late January, indicating a steady uptrend that it has yet to lose. LINK lost the parallel channel around the start of the new year, but that turned out to be temporary.
LINK is currently trading at support near the 0.236 retracement of its rise, which is expected 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 have to overcome rejection resistance from its recent high at $28.6, which shouldn’t be a major challenge.
Support: $26.1, $24.5, $23.2
Resistance: $28.6, $29.1