- Ethereum has fallen roughly 25 per cent since Donald Trump’s return to the White House, according to the report.
- The price correction is adding pressure amid India’s existing cryptocurrency taxation framework.
- India continues to apply a 30 per cent tax on gains from virtual digital assets and 1 per cent TDS on specified transactions.
New Delhi: Ethereum, the world’s second-largest cryptocurrency by market capitalisation, has declined by roughly 25 per cent since Donald Trump returned to the White House, according to media report. The fall has added to concerns among Indian crypto investors as digital asset markets experience renewed volatility.
The price correction has affected market sentiment at a time when investors are closely monitoring global economic developments, regulatory decisions and institutional participation in cryptocurrencies.
Ethereum’s decline is particularly significant for Indian investors, many of whom entered the digital asset market during periods of strong price growth. The latest correction has highlighted the risks associated with volatile cryptocurrencies.
Ethereum Faces Pressure in Global Crypto Market
Ethereum, commonly known as Ether (ETH), is the native cryptocurrency of the Ethereum blockchain. The network supports decentralised applications, smart contracts and several digital asset services.
However, Ether’s market price remains sensitive to broader cryptocurrency trends, investor sentiment and global financial conditions.
Recent market data showed Ethereum trading near ₹2.13 lakh on October 30. Its price was down approximately 17 per cent over the previous month and more than 40 per cent over the past year, according to market trackers. These figures reflect a separate measurement period from the roughly 25 per cent decline cited since Trump’s return to office.
The broader cryptocurrency market has also experienced selling pressure, with Bitcoin and other major digital assets recording declines.
Why Are Cryptocurrency Prices Under Pressure?
Cryptocurrency prices are influenced by several factors, including global liquidity, interest-rate expectations, institutional investment flows and geopolitical developments.
When investors become cautious about risky assets, they may reduce exposure to cryptocurrencies and move towards traditional financial instruments.
Ethereum can also experience additional pressure from changes in demand for blockchain-based applications, competition from other networks and movements in institutional investment.
Market reports have highlighted concerns about exchange-traded fund outflows, large investor selling and broader uncertainty as factors affecting Ether’s recent performance.
Although Trump’s return to the White House has been an important political and economic development for cryptocurrency markets, the price movement should not be attributed to a single factor without further evidence.
Indian Crypto Investors Face Additional Challenges
The decline in Ethereum’s value comes at a challenging time for cryptocurrency investors in India.
The country continues to impose a 30 per cent tax on income from the transfer of virtual digital assets. In addition, a 1 per cent tax deducted at source (TDS) applies to specified transactions, subject to applicable thresholds.
India’s tax framework also restricts the adjustment of losses from virtual digital assets against other income and does not permit such losses to be carried forward under the relevant provisions.
These provisions can affect investors’ net returns, particularly during periods of frequent trading and falling prices.
For investors who sell digital assets at a loss, the inability to offset those losses against other income can make the financial impact more difficult to manage.
Crypto Industry Seeks Greater Tax Clarity
India’s cryptocurrency industry has continued to seek changes to the existing taxation framework.
Industry participants have called for a reduction in the TDS rate and greater flexibility in adjusting losses from crypto transactions.
However, the Union Budget 2026 did not reduce the existing 30 per cent tax on gains or the 1 per cent TDS requirement, according to reports on the budget provisions.
The combination of market volatility and taxation requirements remains an important consideration for Indian cryptocurrency participants.
What Lies Ahead for Ethereum?
Ethereum’s future price movement will depend on several factors, including demand for digital assets, institutional investment, global monetary policy and developments within the blockchain ecosystem.
Investors will also monitor whether the broader cryptocurrency market stabilises after its recent correction.
However, a short-term price recovery cannot be assumed. Cryptocurrency markets remain highly volatile, and sharp price movements can result in significant gains or losses.
For Indian investors, understanding the risks, tax implications and market conditions remains essential before making decisions involving digital assets.
You May Like