The week before April 8 saw the largest net outflow from institutional crypto investors since January 2022. The hostile regulatory environment in Europe and India, the low volume of trade, and the high rating of Bitcoin have persuaded global cryptocurrencies to withdraw their investments.
According to a report by CoinShares, these funds raised a net $134 million from the market in one week; $131.8 million from Bitcoin alone. The world’s oldest cryptocurrency hit a maximum of $48,000 per coin last week after struggling to increase ratings this year. However, it has dropped below $40,000 again, with a strong outflow this week.
Meanwhile, Ethereum also saw a net outflow of $15.3 million during the same period. Small altcoins such as Solana, Litecoin, and Cardano saw a net influx to balance the week’s investments. Thanks to the new MiCA framework adopted in the EU, which aims to track all cryptocurrencies, with 30% capital gains tax, and 1% TDS tax on each transaction under the new regulations of India, the volume of crypto trading decreased in April.
Only in India is it suggested that the new rules change the profile of the average crypto trader. Although many traders have been small retailers, more than 54 percent of crypto traders invested in the ecosystem for the first time in years. Shortly, Indian crypto trading may be dominated by individuals with high net worth.
It is worth noting that Coinbase, a publicly listed American crypto exchange, announced its arrival in India last week. It also said that it allows users to purchase coins through the UPI. Within hours, the NPCI released a press release stating that they were unaware of cryptocurrencies using UPI; Within days, Coinbase had to cancel their UPI facility.
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