Bitcoin takes 10% nosedive after proposed ban in India

Bitcoin takes 10% nosedive after proposed ban in India

BITCOIN: India will propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets, a senior government official disclosed in a potential blow to millions of investors piling into the red-hot asset class.

The bill, one of the world’s strictest policies against cryptocurrencies, would criminalise possession; issuance; mining; trading; and transferring crypto-assets, said the official, who has direct knowledge of the plan.

The measure is in line with a January government agenda that called for banning private virtual currencies such as bitcoin; while building a framework for an official digital currency. But recent government comments had raised investors’ hopes that the authorities might go easier on the booming market.

Also Read: Bitcoin slides in worst weekly drop since March amid selloff

Instead, the bill would give holders of cryptocurrencies up to six months to liquidate, after which penalties will be levied, said the official, who asked not to be named as the contents of the bill are not public.

This bill has resulted in a plunge – nearly 10% from a record breaking $61,900 that running into last weekend.

This pull back in the price of bitcoin to around $56,000 after hitting the historical high has raised a few questions. The pioneer cryptocurrency has demonstrated over the last few months its undoubted potential despite still facing a cloud of pessimism from anti-crypto investors. So, crypto enthusiasts are looking at the current pullback as an opportunity to buy bitcoin before the next bull-run begins.

Nonetheless, the volatility exhibited by the BTC/USD alongside other cryptocurrencies suggests more options to profit from bitcoin in 2021.

About The Author

Kingsley Alaribe is a Digital Marketer with 1stNews, and writes the weekly column, Strangers and Lovers. He is also a Data Scientist. Email: [email protected]

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