Cryptocurrencies fall: what stands behind?

Top 100 cryptocurrency are demonstrating the deep dump; let's try to figure out, why
02 February 2018   1659

The first cryptocurrency continues one of the deepest price falls in its history. Today, on February 2, the average bitcoin rate fell below $ 8500, which corresponds to the values of the end of November last year.

Bitcoin Price Chart
Bitcoin Price Chart

The current capitalization of "digital gold" is $ 141 billion. The dominance index is also relatively low - 35.9%.

In just a month, the total market capitalization of the cryptocurrency decreased by half. So, if in early January 2018 the total value of the digital assets on the market reached $ 800 billion, now it is $ 395.4 billion.

Almost all the cryptocurrencies from the first hundred of the Coinmarketcap rating show a deep dump.

Top Ten Cryptocurrencies
Top Ten Cryptocurrencies

Among the reasons for the fall can note the tightening of regulation in India and South Korea, as well as the multi-million dollar loss of the Coincheck exchange hack and, as a consequence, the increased likelihood of tightening regulation of the crypto industry in Japan. The CFTC has begun to scrutinize the activities of the large Bitfinex exchange and Tether.

Crypto Taxpayers to be supported in India

Cleartax, the largest Indian tax filing platform joins Zebpay exchange to help crypto taxpayers
24 March 2018   100

The object of this partnership is to educate Bitcoin traders and investors about the current tax laws and how to apply them in stating cryptocurrency profits and incomes. Indian authorities are aimed to find the best approach to Bitcoin and the other kinds of cryptocurrencies. The recent declarations of the regulators that new instructions would be accepted in a short time, have not been followed by real actions. So the attempts to enforce the control on this sphere have led to summaries that this task in not going to be simple at all. According to last month media reports, new frameworks and rules were waited by the end of March.

Though they failed to to introduce extensive regulations, the Indian authorities are focused to tapping into crypto earnings. In a previous month the Income Tax Department released notifications for thousands of cryptocurrency investors, as reported.

The Cryptocurrency Advisory Plan will help Indian bitcoin investors and traders in this year's tax campaign. The biggest tax filing platform Cleartax joins the Indian bitcoin exchanges and wallet providers Zebpay. They are both objected to support taxpayers to understand and abide by the law regarding taxation of the transactions with cryptocurrencies.

Cleartax declared it has the tax and technological expertise “to help people understand how bitcoin works”. Besides, the platform has started tax filing services for cryptocurrency investors. The Cleartax CEO and founder Archit Gupta claimed that together with Zebpay they are going to “simplify taxes for Indians”. The head of exchange at Zebpay, Nischint Sanghavi added that he believes the partnership with Cleartax will simplify tax planning for Zebpay`s customers.

In February about 100,000 cryptocurrency investors received tax notices from India`s Income Tax Department. Questionable dubious transactions, authorities investigated some of the cryptocurrency exchanges, and banks paused many of their accounts. Then the governmental pressure caused significant drop in trading volumes.

The authorities in Delhi have set a number of warnings against investing in BTC. Also the largest commercial banks have restricted severely the operations of local exchanges and individual cryptocurrency traders, even before any law demanding such measures is adopted.