Bitcoin retreated to record highs on Monday as one of the world’s largest economies was contemplating a complete ban on cryptocurrencies.
The world’s largest and oldest digital currency was trading at $ 56,626.27 as of 11:14 a.m., down 5.7 percent from a day earlier and down 8 percent from the high of $ 61,556.59 it reached on Saturday. CoinDesk data show.
Dip said after a report that India would propose a law to keep, trade or issue any cryptocurrency, cutting off access to the mass market for the crypto industry.
If it is enacted, the measure would give India one of the world’s strictest policies against cryptocurrencies as officials prepare a blueprint for an official digital currency on Sunday. Reuters report
, Which cited a senior government official.
“It seems that the Indian government has forced at least some investors to pull out of this market to criminalize cryptocurrency,” said Julius de Kempener, senior technical analyst at StockCharts.com.
“It’s still a plan … and the plan may change,” he said. “We’ll have to see what comes out.”
The news agency said the dangers of a crack have not stopped cryptocurrency from gaining popularity in India, where 8 million investors have digital assets worth approximately $ 1.4 billion.
But fear of a ban still led to a rally that took out $ 60,000 worth of bitcoin for the first time over the weekend.
President Biden signed his signature $ 1.9 trillion coronovirus incentive package, after which a third round of direct payments would be given to millions of Americans.
“I believe that one of the biggest factors in increasing expectations for new stimulus investigations is [Bitcoin] On weekends with historically thinner versions over the weekend, ”said Anthony Denier, CEO of trading platform Weibull.
The massive COVID-19 relief spending has led to concerns about inflation on Wall Street, with many institutional investors feeling that bitcoin offers its own protection.
According to data from CoinDesk, mainstream adoption has helped the price of bitcoin rise by 96 percent, despite a drop as of Monday this year.
The trillion-dollar coin has given a boost to companies such as Tesla and Square, which have added bitcoin to their corporate balance sheets, as well as plans to give financial institutions more support for cryptocurrency, such as MasterCard and BN Vialon.
With post wires
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