Indian Crypto Taxes Crush Trade Volumes as Local Exchanges Prepare to Leave
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As per ritual, let’s start with a quick look at the Market.
Today’s Crypto Fear and Greed index
Indian crypto taxes crush trade volumes as local exchanges prepare to leave.
The Indian government passed legislation imposing a 1% tax (known as TDS, or Tax Deducted at Source), effective July 1, 2022, on all cryptocurrency-related transactions totaling more than $126. (10,000 INR).
Trading volumes on exchanges like WazirX, ZebPay, and CoinDCX decreased by at least 50% after the tax went into effect last week.
The higher tax burden, along with the present bear market, has prompted several businesses to relocate to crypto-friendly jurisdictions such as Dubai and Singapore.
Troubled cryptocurrency lender BlockFi has agreed to be acquired by FTX for up to $240 million.
BlockFi functions similarly to a bank. You deposit money and earn interest on it. They, like Celsius and Anchor, offered unsustainable high rates to stimulate growth.
CNBC reported on Thursday that the starting price could be as low as $25 million, compared to the $2.1 billion in venture capital funding that BlockFi has received.
The agreement with FTX also includes a $400 million revolving credit facility from the cryptocurrency exchange operator.
Bitcoin and Ethereum Rise as Mini Rally Forms in Crypto Market
A day after the U.S. Independence Day, Ethereum gained 9% and Bitcoin (BTC) gained 5% respectively over the previous 24 hours.
Improved on-chain user activity and a strong shift in Total Value Locked (TVL) across Ethereum are the main drivers of the bullish price action.
Glassnode data suggests that Bitcoin appears to have driven away "market tourists," leaving just so-called HODLers behind.
U.S. Oil Drops Below $100 As Recession Worries Rise; Gas Prices To Fall
The decline in commodity prices coincided with what is known as a U.S. Treasury bond yield curve inversion, which happens when the yields on 2-year notes surpass those on 10-year notes.
According to a study from the San Francisco Federal Reserve, a prolonged inverted yield curve has been a reliable predictor of financial market sentiment, having occurred before each of the nine recessions the U.S. economy has experienced since 1955.
However, due in part to the impact of sanctions on the sale of Russian crude and the current restriction on exports from Iran, U.S. oil corporations are still expected to report record profits for the June quarter.
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