Undoubtedly, 2022 has been a difficult year for global markets due to a number of global downturns, including as war, growing inflation, monetary tightening, and many more. These downturns have put a lot of pressure on many asset classes, including cryptocurrencies. In order to promote the use of bitcoin assets, the government implemented a variety of measures in 2022, including a 30% cryptocurrency tax and Central Bank regulations.
Digital Currency (CBDC), a new concept from the RBI. The cryptocurrency market, however, became too hot as a result of key occurrences like the fall of Terra-Luna, the bankruptcy of Vauld, and the collapse of FTX. The most valuable cryptocurrency by market capitalization at the start of 2022 was Bitcoin, which was trading at $47,686.81 and had a $902,104,193,385 market capitalization. However, by December 30 of 2022, Bitcoin had fallen to $16,602.59 and had a $319,559,502,980 market value.
How did the cryptocurrency market fare in 2022?
Black swan events like the collapse of Terra/LUNA, the bankruptcy of 3AC, and the collapse of FTX added to the downward pressure on the price of a cryptocurrency, which is an emerging asset class.”
Cryptocurrency trading on legal onshore platforms was challenging due to factors such as the 30% capital gains tax, the inability to offset losses, and the 1% TDS. The business observed a sharp decline in trading activity as well as the transfer of money to dangerous offshore exchanges, according to Parth Chaturvedi.
The development of new blockchain/crypto initiatives has not slowed down throughout the course of the year, and India has one of the strongest Web3 developer communities in the world. The climax of this was the most recent Web3 hackathon, ETH India, which brought together tens of thousands of engineers and produced over 400 projects in record time. Parth Chaturvedi continued, “Once regulatory certainty materializes, India can be a powerhouse in driving the global crypto and Web3 business.
“The year 2022 was a difficult year for the cryptocurrency markets, due to several knee-jerk reactions amid the coming crypto winter,” remarked Mr. Dileep Seinberg, Founder and CEO of MuffinPay and Crypto Neobank. The collapse of significant exchanges like FTX, Celsius, Three Arrow Capital, and Vault as well as large projects like Terr’a LUNA further damaged market perceptions.
