Rise of AltcoinsA glimpse at the impending finance bill of India and its connection with altcoins.

Indian Prime Minister Narendra Modi’s government seems to have adopted deterrence at least until the digital rupee arrives as the cornerstone of the country's crypto policy. The passing of the finance bill without reducing crypto taxes, which is expected later Thursday, offers yet another example of India's uncompromising stance against crypto and a chance for altcoins to rise.

On Feb. 1, India announced the stiff crypto taxation proposals – a 30% capital gains tax, a 1% tax deducted at source (TDS), no offsetting of losses, and taxation of gifts – along with its plans to launch a CBDC by the end of the financial year 2022-23. Since then, the industry had pleaded with the government to tone down its taxation policy, particularly the 1% TDS.

The largest cryptocurrency by market cap was recently holding above $42,400, roughly where it perched 24 hours ago. Ether, the second-largest crypto by market cap, was about as flat over the same period. Cardano's ADA and Axie Infinity's AXS were the stars of the day, each rising about 10%. Popular meme coins DOGE and SHIB were solidly in the green, as was SAND.

Alternative coin prices veered mostly from equity markets, which lost momentum after a series of increases dating to late last week. The tech-heavy Nasdaq and S&P 500 were both off 1.2%. While the jump in altcoins seemed to underscore at least a temporary appetite for riskier assets, investors also continue to watch macroeconomic conditions warily and are largely holding a more cautious posture.

Even though it is true that cryptocurrencies usually aren't backed by any central authority in the same fashion as fiat currencies or another government-sanctioned medium of exchange,  government backing can actually improve faith in the value of a currency among consumers, and it provides a big spender and collector of the currency.