Bitcoin prices haven’t been particularly doing well for the past month. Even after rising time and again, the prices fell and were mostly near $30,000. But now without any commotion, Bitcoin slowly rallies past $37,000. This comes after the India Budget 2021 was announced, and cryptocurrency was completely ignored. Because before that, an India ban of the currency was being speculated, resulting in a bearish market.
Bitcoin in 2021
Reports suggest that in 2021 about 26,000 bitcoins were mined and around 40,000 bitcoins were bought by Grayscale holdings. This shows that there is a market demand being created as the demand is more than the production. Hence, the price is also increasing. This increase is fundamental and therefore, is supposed to stay. It was also the complete opposite of the price hikes when Elon Musk tweeted and changed his bio to “#Bitcoin”. And even though after this the prices rallied past $38,000, it fell back very quickly too.
Bitcoin is very close to cross the $40,000 mark and make a sustainable position for itself. As JP Morgan analysts said that if Bitcoin crosses $40,000, it might boost immensely and even reach $70,000 very soon. But another thing that is at play here is the market share. With other cryptocurrencies becoming more famous like Etherium and Dogecoin, Bitcoin is slowly losing out on the market share. Etherium recently made an all-time high crossing $1,500 while Dogecoin is also getting a lot of investment.
Bitcoin ban in India
Like in 2018, the Indian government is again planning to ban Bitcoin and other cryptocurrencies in India. In fact, they are planning to launch a national digital coin that will promote the digital economy in India. Even though the government hasn’t banned the currency yet and ignored the topic in Budget 2021, this just means that it’s not in a hurry.
Even though in 2018, the supreme court reversed the ban in the country, we cannot be sure if that might happen again. On Twitter, several hashtags about India wanting crypto is trending. And at the same time, trading platforms are asking for support and telling users to mail the government to ask them not to ban crypto trading.
India is a very big market for currency. And about Rs, 40,000 crores of transactions happen every year. So, if these transactions stop, the price of the currency is going to be affected substantially. The brief glimpse of which we saw in the past few days.
What are your thoughts on the fact that Bitcoin slowly rallies past $38,000? And do you think this growth will be sustainable? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.