There was a bloodbath in the crypto market on Tuesday as top crypto tokens wiped out up to half of the investors’ wealth in just a few hours. Investors hastened to sell digital assets as if there was no tomorrow. Barring the dollar-pegged stable coins, all major crypto tokens and altcoins were bleeding. Terra tanked over 50 per cent, wiping off half of the investor wealth, whereas Shiba Inu’s 17 per cent drop pulled it out from the top-15 crypto tokens. Bitcoin slumped about 10 per cent to hit 10-month lows, while Ethereum dropped another 8 per cent. Solana, Cardano, Avalanche, BNB plunged in the range of 12-16 per cent each.
“Bitcoin plummeted below the $30,000 level to record a 12 per cent single drop drop as fear gripped the crypto markets leading to massive sell-offs. The Fear & Greed index that measures the market sentiments, is at its lowest since the start of this year,” said WazirX in a note.
Jennifer Lu, Cofounder at Coinstore, said: “The crypto market globally headed south along with the traditional markets as a result of which most of the crypto assets were in the red. Bitcoin, the world’s oldest cryptocurrency hit the lowest level since July 2021 and is expected to find a new lower support level. Ether, the most popular altcoin, fell by 9 per cent while WAVES was the only crypto asset among the top 60 which was in the green during the day trade. The tightening of monetary policy by the US and high inflation kept the investors on their toes as the sellers dominated the market. The overall crypto market witnessed a drop of almost 10 per cent. Growing geopolitical uncertainty led by the Russia-Ukraine war and Srilanka unrest also added to the market woes.”
Bitcoin, the world’s biggest cryptocurrency, has tumbled 28 per cent this year so far. As per analysts and watchers, the Russia-Ukraine war and changing economic policies impacted the cryptocurrency market as investors flee to more stable havens. Bitcoin hit an all-time high of $67,549.74 on November 09, 2021. The swing has been wild, with the range from May 2021 to May 2022 being a steep $68,789.63 at the highest to $28,893.62 at its lowest.
Over the month so far, highs and lows have ranged from $43,376.38 to $33,714.43. For stakeholders, this is uncomfortably close to its last year’s low of $31,594.66 — recorded on June 26, 2021.
In policy news, the GST Council is considering levying 28 per cent tax on cryptocurrencies and related services, sources told CNBC-TV18. The proposal is likely to be tabled in the next GST Council meeting.
According to the sources, the government’s view is to keep cryptos on par with lottery, casinos, betting, and race courses. The law committee’s view will be tabled before the Council for a formal nod. The date for the next GST Council meeting is yet to be decided.
Further, the guidelines making it mandatory for aggregators to redress consumer complaints in a stipulated timeframe are also being worked upon. The proposal to levy the highest GST slab of 28 per cent will expand the indirect tax net on cryptocurrency-related services.
Here are the top 10 cryptocurrencies and their prices on May 10, 2022 ( According to data from coinmarketcap.com)
Bitcoin $31,522.82 or 5.2 per cent loss in the last 24 hours
Ethereum $2,382.43 or 1.92 per cent loss in the last 24 hours
Tether $1 or 0.01 per cent gain in the last 24 hours
BNB $322.55 or 4.59 per cent loss in the last 24 hours
USD Coin $0.9999 or 0.01 per cent loss in the last 24 hours
XRP $0.5671 or 0.91 per cent loss in the last 24 hours
Solana $75.36 or 2.71 per cent loss in the last 24 hours
Cardano $0.7101 or 3.99 per cent loss in the last 24 hours
Terra $29.99 or 50.45 per cent loss in the last 24 hours
TerraUSD $0.9976 or 0.04 per cent gain in the last 24 hours