High US Inflation Spooks Crypto Market; Nithin Kamath Says Crypto Tax Helped Investors Indirectly

The cryptocurrency market got spooked further with US inflation rate reaching a 40-year high of 8.6 per cent and fell on Monday.

The global crypto market capitalisation crashed by 6.63 per cent to $1.04 trillion as of 8.50 am. However, the global crypto volume due to increased liquidations was up by 28.47 per cent to $94.06 billion, as per Coinmarketcap data.

Meanwhile, Zerodha's founder Nithin Kamath has said that the introduction of crypto tax from April 1, 2022, indirectly saved investors who would have bought the dip in crypto prices only to see their losses deepen in the coming months.

One of the major causes of destruction of wealth for stock market investors is buying in the dip, meaning investors trying to average down a stock whose price is falling. “I think many Indian crypto investors accidentally got lucky due to TDS and Tax on Crypto announcement this budget in Feb. Activity & participation dropped significantly immediately. If not, many could have potentially been trapped trying to buy the dip and then averaging down,” said Kamath in a social media post.

I think many Indian crypto investors accidentally got lucky due to TDS & Tax on Crypto announcement this budget in Feb. Activity & participation dropped significantly immediately. If not, many could have potentially been trapped trying to buy the dip & then averaging down. 1/3 pic.twitter.com/4SKmo8cvKx

Cryptocurrency Prices

Bitcoin (BTC), the world’s oldest cryptocurrency, was trading at $25,747.64, lower by 7.82 per cent in the last 24 hours. Ethereum (ETH) was down by 8.04 per cent to $1,357.26. 

Among other significant coins, Cardano (ADA) was down by 9.61 per cent at $0.4691, Algorand (ALGO) was trading with a loss of 8.94 per cent at $0.3032, Solana (SOL) was trading with a loss of 10.5 per cent at $29.00, Polkadot (DOT) was down by 7.95 per cent at $7.05, and Binance Coin (BNB) was down by 7.64 per cent at $238.

Today’s top gainer was United Bitcoin (UBTC), which was up by 454.61 per cent at $0.1765 . The top loser was METALANDZ ($METAZ), which was down by 63.54 per cent at $0.00000006271. 

Meme Coin And DeFi Prices

Dogecoin (DOGE) was down by 7.58 per cent at $0.06042. Its volume to market cap ratio stands at 0.1076. Rival Shiba Inu (SHIB) was down by 7.82 per cent at $0.000008175.

Dogelon Mars (ELON) lost 10.9 per cent to trade at $0.0000003029, Floki Inu (FLOKI) lost 10.72 per cent at $0.000005416, and Samoyed Coin (SAMO) lost 6.43 per cent at $0.004691. 

In the DeFi segment, YFI (yearn.finance) was down by 10.11 per cent at $5,432.89, and Terra Classic (LUNC) was trading with a gain of 2.58 per cent at $0.00006807. Avalanche (AVAX) was down by 15.48 per cent at $15.81, Uniswap (UNI) was trading with a loss of 10.62 per cent at $3.74, and Aave (AAVE) fell by 10.14 per cent at $65.06.