Looks like the 2024-2025 crypto downturn is hitting household wallets hard, and we’ve got survey data to back it up.
*What the surveys found:*you
*1. Household savings are down*
A LocalCircles survey in India found that 48% of households believe their savings will reduce in FY 2024-25 vs FY 2023-24. 28% expect savings to drop 0-25% and 15% expect a drop of over 25%. Main reason: living costs rising faster than earnings, forcing families to dip into savings, take loans, or liquidate assets.
*2. Crypto investors hit even with losses*
KoinX data on ∼7 lakh Indian crypto users for FY 2024–25 shows:
- 49.09% reported net capital losses
- Yet users with ₹1,178 crore in net losses still paid tax on ₹180 crore of taxable gains
Why? Current rules don’t allow crypto losses to offset gains - tax is applied to individual profitable trades, not net profits. So people paid tax even after losing money overall.
*3. Market context driving the squeeze*
- Bitcoin fell 36% from its Oct 2024 peak of $126,198 to $80,660 by Nov 21, wiping out ∼$700 billion
- Global crypto market cap shed $1.16 trillion in 50 days
- Bitcoin recently slumped to ∼$108,000 ahead of US CPI data, with Ether also down
- Strategy Inc slashed 2025 earnings forecast due to bitcoin slump below $90,000
*Why households feel it:*
1. *Direct exposure*: Retail investors who bought near highs are sitting on losses but still owe tax on any winning trades.
2. *Wealth effect*: $1.16T in crypto wealth erased means less spending money, especially for younger investors who had higher crypto allocation.
3. *Tax structure*: India’s VDA tax rules treat crypto differently than stocks - no loss offset. So a bad year hurts twice.
The downturn isn’t just numbers on a chart - 48% of households are already seeing savings shrink, and crypto’s tax treatment is adding pressure for retail traders.
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