Bitcoin price on Wednesday dropped to their lowest in a month. The most popular cryptocurrency declined to $55,460.96 on November 24. Multiple factors were at play behind this decline, analysts believed. End of year profit-booking, increasing selling pressure and Indian government’s decision to introduce ‘Cryptocurrency and Regulation of Official Digital Currency’ bill soon kept the cryptocurrency world under pressure.
The world’s largest cryptocurrency by market capitalisation fell 0.58 per cent to $56,607.05, according to CoinMarketCap at 0800 hours on November 24. A bill to ban all private cryptocurrencies in India, with a few expectations to promote blockchain technology will be introduced in the upcoming winter session of the parliament. “The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses,” the bulletin listing the legislative business posted on Lok Sabha’s website said.
The central bank of India is also planning to bring its own digital currency.”To create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India,” it added. The Lok Sabha bulletin did not provide any other details about the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.
With the news surrounding India’s prohibition of private cryptocurrencies other than a few exceptions, we saw the crypto markets invariably sliding. Bitcoin,however, maintained its position around the $57,000-mark. The daily timeframe for Bitcoin trend indicates a retesting of support at $57,000-$58,000 levels. If Bitcoin breaks further down from here, the next support level is at $53,000, said WazirX Trade Desk.
Cardano, Solana, XRP also witnessed a sharp decline in the last 24 hours. Solana dropped 2.18 per cent to $215.86 while Cardano tanked 6.64 per cent to $1.68. XRP fall 1.40 per cent to $1.04. However, Ether gained in the last 24 hours.
The central government sources had mentioned earlier it was looking at “forward looking and progressive” regulation. After the meeting, Parliament’s standing committee on finance met to seek views from various stakeholders in the industry.
Addressing the Sydney Dialogue, a forum on emerging, critical and cyber technologies, PM Modi said, “Take cryptocurrency or Bitcoin, for example. It is important that all democratic nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth.”
There has been a sharp increase in interest in cryptocurrency with several people investing in private digital currencies. The country now has more than 10 crore crypto owners in the world, according to broker discovery and comparison platform BrokerChooser. The Reserve Bank of India has consistently maintained the need to ban cryptocurrency in India.
“The past 24 hours remained an unusual mix of ups and downs across the cryptocurrency market. Although the global market remained largely range-bound, the Indian crypto market had a massive news to deal with.The cryptocurrency bill in India would be discussed during the winter session and reports suggested that India would likely ban all private cryptocurrencies. This news made all the INR trading pairs, such as BTCINR and USDTINR, take a massive blow. Indian cryptocurrency exchanges saw a huge number of people either liquidating positions or transferring their assets to other global exchanges,” said Edul Patel, CEO and co-founder, Mudrex- A Global Crypto Trading Platform.