Bitcoin fell on Monday, falling from a record high of over $ 60,000 (approximately Rs. 40 lacquer) over the weekend as investors took advantage of a potential cryptocurrency ban from India.
The cryptocurrency reached a record high of $ 61,781.83 (approximately Rs. 44.7 lacquers) on Saturday after the US president Joe Biden signed its fiscal stimulus of $ 1.9 trillion (approximately 1.37,64,650 kroner) and ordered the acceleration of vaccinations.
Because some investors tend to see Bitcoin as a hedge against inflation, analysts believe that the rise in bitcoin has been helped by the prospects for a steep economic recovery.
In the afternoon trading, bitcoin fell 5.3% to $ 55,865 (approximately Rs. 40.4 lacquer).
A senior government official told Reuters overnight that India, Asia’s third-largest economy, was preparing a bill to criminalize the possession, issuance, extraction, trade and transfer of cryptocurrencies.
The bill was in line with India’s government program in January, which called for a ban on private virtual currencies such as bitcoin, while building a framework for its own official digital currency.
“The renewed interest of the Indian government in banning cryptocurrencies has led to an initial decline of $ 60,000 (approximately Rs. 43.3 lac.) In the range of up to $ 56,000 (approximately Rs. 40.5 lac.),” John said. Wu, president of AVA Labs, an open source platform for creating financial applications using blockchain technology.
In India, despite the government threats of prohibition, the volume of transactions is increasing and 8 million investors now hold 10,000 kroner in crypto-investment, according to industry estimates. No official data.
The world’s largest virtual currency reached $ 61,781.83 (roughly Rs. 44.7 lacquer) on Saturday, up more than 40 percent since late February as investors dismissed concerns over sky-high estimates.
Despite Monday’s withdrawal, many investors believe the outlook for the price of bitcoin remains upward.
Seth Melamed, the Tokyo-based chief operating officer of the cryptocurrency exchange Liquid, said legislation of the kind India is proposing would not be an obstacle to further profits for bitcoins.
“Because it is decentralized, government bans or admissions are somewhat irrelevant,” Melamed said. “Capital will find a way.”
Bitcoin has risen more than 90 percent this year, significantly outpacing traditional asset classes, fueled by the embrace of cryptocurrencies from major companies and major investors, including Tesla Inc and Bank of NY Mellon.
“The reason why the continued growth of bitcoins is such a surprise to the traditional financial market is that they are looking at its fundamentals, while they have to look at the market forces driving its adoption,” said Sergei Nazarov, co-founder of Chainlink, a decentralized network that provides data on smart contracts in the blockchain.
“Bitcoin participates in the same market dynamics as all Fiat money, where market forces determine its value much more than any kind of clear basis,” he added.
Bitcoin’s record was hit in thin markets on Saturday due to the weekend, as technical factors increased the pace higher, said Justin d’Anettean, sales manager at digital asset company Diginex in Hong Kong.
© Thomson Reuters 2021
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