Čvc 20

Financial Analyst: Bitcoin Futures Are A Great Buy At $8,500

Crypto analyst John Kolovos recently told Bloomberg TV that Bitcoin price will drop to $8,500 before sharply rebounding.


4-Digit Bitcoin Price Is A Steal

Earlier this week Macro Risk Advisors chief technical analyst John Kolovos spoke with Bloomberg TV about Bitcoin price action and the recent Congressional and Senate hearings over Facebook’s Libra cryptocurrency. According to Kolovos, Bitcoin price is “going through a corrective process” and he placed emphasis on “process” in order to clarify that he does not believe Bitcoin is going through a trend changing correction. 

Kolovos explained that Bitcoin price is currently going through the motions of a classic ABCD correction and finding support around $9,000. Kolovos suggests that Bitcoin is nearly on the verge of stabilizing but cautioned that before this happens the digital asset is in for a more downside followed by choppy consolidation. 

John Kolovos: Bitcoin Futures Are A Great Buy At $8500

John Kolovos: Bitcoin Futures Are A Great Buy At $8500

Currently, Bitcoin price is finding support at the 50-day moving average but the presence of an M top (double top) formation could continue to attract bears. Additionally, the RSI still has room to drop before a healthy bounce. During the 2017 bull run, an RSI reading of 40 proved to be a reliable bounce point that attracted buyers. 

Why $8,500 instead of $7,500?

When asked about his thoughts on why the double top will complete at $8,500 to $9,000 instead of Bloomberg’s forecast that Bitcoin price could drop to or below $7,000, Kolvos outlined the following: 

  • There is a lot of price congestion in the current range. 
  • The prevailing trend on the long-term chart was very strong and a counter-trend trade is not advised.
  • There are buyers at lower levels between $9,000 and $8,000
John Kolovos: Bitcoin Has A Bullish Outlook In Long Term

                                                  John Kolovos: Bitcoin Has A Bullish Outlook In Long Term

Kolovos also explained that bulls are clearly in charge as Bitcoin is above the 50-week moving average and the break above the descending wedge in April 2019 was a clear indicator of the resumption of the long-term uptrend. Kolovos said:

Classic technical analysis tells you that this pattern, implication of which, gets you back to the old highs, which would be around $20,000. So the long-term trend tells me to buy the pullbacks so that’s the reason why I think we should be buying around $8,500. 

It could be a Rocky Weekend

At the time of publishing, Bitcoin price is holding above $10,000 and trading in a tightening range between $10,300 – $10,600. Price action has been relatively choppy throughout this week and the current rumor that the Commodity Futures Trading Commission (CFTC) is investigating BitMex for allowing U.S. residents to use the platform has shaken traders interim confidence in the crypto-market. In 2019 weekends have tended to witness whipsaw volatility from Bitcoin so the next 48-hours could see a series of decisive moves from Bitcoin. 

Do you think Kolovos is on the money about his $8,500 Bitcoin price prediction? Share your thoughts in the comments below! 


Images via Shutterstock, Bloomberg

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Čvc 19

Bitcoin Still Legal In India; Crypto Regulation in Works

Bitcoin will remain legal in India while the government works on regulations, a minister has said in new positive comments on the fate of the industry.


Finance Minister: Bitcoin Regulations Coming

Responding to a request for clarity on the state’s view of cryptocurrency, Anurag Thakur, India’s Minister of State for Finance & Corporate Affairs, firmly denied any token was illegal. 

The comments contradict the content of an alleged draft law which surfaced last week, which outlined plans for a blanket ban on cryptocurrency and prison sentences for its use. 

The document, which appeared online from a local lawyer, appeared to form the basis of the queries to Thakur, who nonetheless did not refer to its contents explicitly.

“No, Sir,” he replied when asked whether the government “has prohibited cryptocurrency.”

“Taking note of the issue, the Government has constituted an Inter-Ministerial Committee (IMC) under the Chairmanship of Secretary (EA). The IMC has submitted the Report to the Government,” he continued.

As Bitcoinist reported, India continues to find itself in a state of flux after highly-mixed messages from authorities and the central bank. 

In July 2018, the Reserve Bank of India (RBI) forbade banks from serving cryptocurrency businesses, resulting in shutdowns for some and exodus overseas for others.

The draft bill, which has not seen recognition, made further reference to the creation of a digital rupee, which its author or authors said would become India’s only legally-allowed domestic digital currency. 

The industry has meanwhile sought to overturn the RBI ban via the courts, a process which appears to have run into multiple delays. 

‘Careful Steps Forward’

Summarizing, Thakur struck a cautious tone, signaling that existing rules applied to cryptocurrency while Delhi thrashed out new regulations.

“Presently, there is no separate law for dealing with issues relating to cryptocurrencies. Hence, all concerned Departments and law enforcement agencies, such as RBI, Enforcement Directorate and Income Tax authorities, etc. take action as per the relevant existing laws,” he confirmed.

“Similarly, police/courts take action on IPC offenses. Further, in view of the risks and dangers associated with cryptocurrencies, Government and RBI have been issuing advisories, press releases, and circulars to the public.”

His words saw a warm welcome among the local cryptocurrency industry, with Nischal Shetty, CEO of exchange WazirX, saying the government was taking “careful steps forward.”

The government saw direct backlash when the draft law emerged, with investor Tim Draper openly calling it “pathetic and corrupt” for allegedly suggesting the ban.


What do you think about the latest comments on bitcoin from India? Let us know in the comments below!


Images via Shutterstock

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Čvc 17

Bitcoin Extends Losses With 12% Slide, Targets $8,000

Bitcoin continues to trade at four figures today as a new wave of bearish momentum sends the asset plummeting below $9,600. A couple of big red candles dumped bitcoin over a thousand bucks in a matter of hours and has left the asset scrambling to find support.


Bitcoin Drops Over $1,000 in a Day

This is not the first time BTC has shed over a thousand dollars in a day, and it probably wont be the last. From a Monday high of $11k bitcoin dropped to settle at the mid $10k level before plunging into four figures during late trading yesterday.

bitcoin

BTC price one hour chart. Tradingview.com

According to charts from Tradingview, BTC bottomed out at $9,250 before climbing back slightly. The recovery has not been strong and further losses are expected. At the time of writing bitcoin was trading at 00. Daily volume has returned to $25 billion but it is largely bearish at the moment, as traders take profits from the recent rally and newbies who bought at the top panic sell.

The move has dropped bitcoin’s market capitalization back to $170 billion and resulted in a loss of $30 billion from the global crypto market cap in just 24 hours.

As per usual, chartists and traders are looking for the next levels of support which appear to be back in the $8,000s as predicted earlier this week. Josh Rager is sticking by his $8k call but adds that altcoins are likely to dump even further.

My current Bitcoin view for max correction is near $8k (give or take 5%) which would be a near 40%+ pullback. This also means that altcoins would retrace at a much deeper %

At the moment bitcoin has corrected 33% from its 2019 high so it stands to reason that there could be further to fall. Crypto analyst and trader Alex Krüger correctly pointed out that the harder they pump, the harder they dump.

Bull market corrections are unavoidable and should be welcome. Assets that go too far up too fast tend to crash the hardest. As everyone who speculated with the price of bitcoin during 2017 and 2018 well knows.

Altcoins Still Melting

There has been no respite for the altcoins in the market as of yet, with many still in free-fall during the Asian trading session today. Ethereum has matched bitcoin’s dump with a 12% slide back to $200, EOS has been smashed even further sliding back to almost crypto winter lows of $3.70.

Also dumping double digits at the moment is Litecoin, BSV, Tron, Cardano, Monero, Dash, Chainlink, IOTA and NEO. It seems like the widespread rumors of the threat of an outright bitcoin ban in the US has put everyone into panic mode this week.

Will bitcoin dump back to $8,000 again? Add your thoughts below.


Images courtesy of Tradingview, Twitter @Josh_Rager,  Shutterstock

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Čvc 16

Now Treasury Secretary Steven Mnuchin Thinks Bitcoin is a Store of Value

The crypto community is still reacting to US Treasury Secretary Steve Mnuchin’s recent commentary on bitcoin and its brethren. The asset itself reacted strongly with a 6% pump on the day and many have taken the positives from the speech, some claiming that it is ‘wildly bullish’.


Mnuchin: Bitcoin as a Store of Value

The rhetoric was to be expected, politicians and bankers still see bitcoin as a tool to do bad things. In reality, it is no different to cash or any other commodity that can be transferred beyond the gaze of prying eyes. The vast majority of crypto users are not criminals, drug traffickers or money launderers, yet the whole space keeps getting this deleterious label because bureaucrats don’t understand it and consequently fear it.

A number of industry observers have taken the positives out of Mnuchin’s commentary which echoed the words in president Trump’s recent crypto tweet. Ikigai Asset Chief Investment Officer, Travis Kling, noted that both the Treasury Secretary and the Fed Chairman agree on bitcoin’s status as a store of value.

The Chairman of the Fed and the Treasury Security both agree that Bitcoin is a speculative store of value. Both of them, along with the President, agree that Libra and Bitcoin are two very different things. Wildly bullish.

Co-founder and partner at Morgan Creek Digital, Anthony Pompliano, looked at it from a different angle in that US regulators are fully open to bitcoin and crypto providing operations are carried out legally and transparently.

Treasury Secretary Steve Mnuchin basically told everyone to follow the rules and not doing illegal things with Bitcoin or crypto. Sounds like a green light for those who want to do things the right way.

This sentiment was echoed elsewhere on crypto twitter with comments such as these from other industry observers:

wow. @stevenmnuchin1 says just said “i’m not speaking on the investment merits of bitcoin, and using it for speculation. i am speaking on stopping illicit financial activity.

this is a non-political situation.

my jaw is on the floor!

Libra Is A Bigger Threat Than BTC

It appears that the US Treasury is more concerned over Facebook’s ambitions to dominate digital finance as it has done with data. Mnuchin stated:

“With respect to Facebook’s Libra and other developments in cryptocurrencies, our overriding goal is to maintain the integrity of our financial system and protect it from abuse.”

A mammoth data farm and internet monopoly with over 2 billion users effectively starting its own bank is bound to rustle a few feathers. If anything, Facebook’s insatiability has shed a better light on bitcoin as nobody owns or controls it, making it the total antithesis of Libra.

Was the recent speech bullish for bitcoin? Add your thoughts below.


Images courtesy of Twitter @Travis_Kling, @APompliano, Politico

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Čvc 15

‘Still Positive About $1 Million Bitcoin Price By 2020 End’: John McAfee

Bears showed up en masse to administer a proper beatdown to Bitcoin price today. Where do we go from here?


Big Players Orchestrate a ShakeOut

On Sunday bears launched a coordinated assault on Bitcoin price which resulted in the price dropping below $10,000 for the first time since July 2. By the weekly close, the king of cryptocurrencies had dropped $1,400 and the total crypto-market cap dipped below $300 billion. As the carnage occurred, the illustrious John McAfee took to Twitter and lambasted investors who were running for the hills forecasting doom for Bitcoin. 

McAfee scolded investors for freaking out over weekly fluctuations and reminded investors to recall Bitcoin price’s parabolic move over the past few months.

Bitcoin Price Going To $1 Million

Despite today’s $1,400 correction, McAfee remains confident that Bitcoin price will reach his $1 million projection by the end of 2020 and he isn’t the only crypto influencer not bothered by today’s correction. 

Popular crypto-analyst PlanB tweeted an intriguing stock to flow analysis which shows BTC price reaching $100K a little after the 2020 halving event, followed by $1 million by 2024 and $10 million by 2028. 

On July 12 Tuur Demeester also posted a chart outlining Bitcoin’s seasonal price performance since 2011 and eagle-eyed traders will probably glean useful tidbits that will help provide foresight into Bitcoin’s future price action.

While today’s drop from $11,400 to below $9,800 is terrifying, corrections of this type are normal for Bitcoin. Investors with a long vision of Bitcoin realize that sharp pullbacks tend to follow parabolic advances and the current correction is likely an opportunity to accumulate more Bitcoin. 

As one would expect, the rest of the top-10 cryptocurrencies took on heavy losses as Bitcoin crashed. Ethereum dropped as low as $191, while Litecoin, EOS, and XRP also took on heavy losses ranging from 15 to 20 percent.

Overall, the crypto market dropped more than $20.1 billion over the last 24-hours. It’s likely that analysts will spend the next few days attempting to determine if the drop was primarily based on technicals or whether larger hands were at play. 

Do you think Bitcoin price will quickly recover to $12,000? Share your thoughts in the comments below! 


Images via Shutterstock, Twitter: @officialmcafee, @100trillionUSD, @TuurDemeester

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Čvc 14

Wells Fargo Won’t Allow Customers To Buy Bitcoin

Wells Fargo, a huge traditional bank founded in 1852 to provide banking services, and mail delivery through the Pony Express, has recently come out stating that it does not allow its customers to purchase Bitcoin with their own funds.


Wells Fargo ‘Does Not Allow Transactions Involving Cryptocurrency.’

Wells Fargo’s decision diverges from other leading financial institutions, who are becoming increasingly pro-crypto technology. For example, Nasdaq CEO Adena Friedman believes in the value of cryptocurrencies and predicts that Bitcoin could be the “global currency of the future.”

The CME Group saw Bitcoin promise when it started exchanging Bitcoin futures contracts in December 2017.

On the other hand, after bashing Bitcoin for years, JPMorgan Chase CEO Jamie Dimon made a U-turn by regretting having called the cryptocurrency a fraud, and now JPMorgan Chase is getting ready to release its own cryptocurrency.

Most recently, during his second day of testimony in the U.S. Senate, Jerome Powell’s testimony legitimized Bitcoin and as a store of value.

In contrast, Wells Fargo is turning in the opposite direction. Specifically, Wells Fargo displays its anti-Bitcoin stance by not allowing its customers to perform transactions involving cryptocurrencies, as the tweet below shows,

This prohibition is contrary to Wells Fargo’s vision, which states, “Customers can be better served when they have a relationship with a trusted provider that knows them well, provides reliable guidance, and can serve their full range of financial needs.”

However, by forbidding a customer from performing transactions in Bitcoin, Wells Fargo is not serving its customers’ “full range of financial needs.”

Bitcoin and other cryptocurrencies are risky and volatile

In June 2018, Wells Fargo banned the purchase of Bitcoin and other crypto-assets using Wells Fargo credit cards. When the ban was announced, a company spokesperson stated,

“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency […] We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”

When Wells Fargo claims that Bitcoin and other cryptocurrencies are risky and volatile, it may be forgetting its prominent and infamous role during the 2008-2009 financial crisis, when markets collapsed. As a result, millions lost their homes, and millions lost their jobs, producing economic mayhem all over the world.

But astonishingly, although Wells Fargo was a contributor to one of the largest-ever financial crises, and after a series of financial scandals, U.S. taxpayers had to bail out the bank.

Wells Fargo received USD 25 billion of Emergency Economic Stabilization Act funds through a preferred stock purchase by the U.S. Treasury Department. As CBS News put it,

“Wells Fargo hit the jackpot. It was one of the first banks to get bailout funds – the biggest amount awarded in a single shot: $25 billion tax dollars.”

Nevertheless, to return to its admirable roots and to satisfy its customers’ needs, Wells Fargo should join the bandwagon of the new economic model, which requires a decentralized, borderless, and secure digital currency, such as Bitcoin.

Why do you think big banks such as Wells Fargo do not allow transactions involving Bitcoin? Let us know in the comments below!
____________________________________________________________________
Images via Twitter/@Ask_WellsFargo

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Čvc 12

Ever Imagined How The Bitcoin Blockchain Looks in 3D?

The Symphony of Blockchains team at IOHK has released an update to the project — Symphony 2.0 which shows a 3D representation of the Bitcoin blockchain.


View the Bitcoin Blockchain in 3D

The team announced the news in a blog post on the Cardano web forum of Monday (July 8, 2019). According to the post, Symphony 2.0 is an attempt to represent the Bitcoin blockchain in a manner that is engaging, stimulating, and entertaining while transforming abstract concepts into tangible sensory information.

For the team, apart from creating a visual spectacle, they felt it necessary to utilize sounds like a signature for transaction blocks. Thus, each block in the network has a unique sound.

Bitcoin 3D

According to the post, the team achieved this unique sound signature through a process called “additive synthesis.” Each transaction has a distinctive sound thus making every block composed of these transactions having its own special “auditory fingerprint.”

Symphony 2.0 feels much like models of the neurons in the brain or indeed the many galaxies in the universe. The design philosophy sees the mempool as a sort of primordial soup visualized in a gravitational swell.

The visual interface also sees validated transactions as concentric rings. Each added transaction causes the rings to extend outward like an expanding model of the physical universe.

Certain aspects of the Bitcoin blockchain visualization incorporate practical elements like trees representing Merkle trees. Zooming into each block sees validated transactions displayed as 3D hexagons.

The followings description from the Symphony 2.0 live environment provide a high-level summary of the project:

Transactions are shown as crystals; height is value, brightness is spent output ratio. Each crystal creates sound based on value, spent outputs, and fee. Sounds are cycled through in the order the transactions were made.

Other Crypto Blockchains in the Works

Symphony 2.0 is available on web browsers for both mobile and laptop devices. For low-end devices, the developers also advise running the visual simulation on medium quality.

The development also plans to create visual blockchain simulations for other networks like Ethereum and Cardano.

Commenting on the importance of the project as a tool for greater blockchain education, Cardano forum user and developer of Symphony 2.0, “IOHK_Kevin” declared:

Describing blockchains and how they work is hard. We’ve already collected feedback from users who say they are using Symphony to teach others about blockchains. They’re now able to describe complex terms that they once could not by using graphs, charts or traditional block explorers.

Bitcoin Genesis Block

There are several real-life examples showing the gaps in knowledge about bitcoin and blockchain as a whole. As previously reported by Bitcoinist, the majority of college students interviewed during a YouTube survey two months ago chose $1 over 1 BTC.

Would you like to see a visual representation of the Bitcoin network? Let us know in the comments below.


Images via Cardano Web Forum.

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Čvc 11

Binance Debuts Margin Trading As Bitcoin Volatility Hits Markets

Malta-based cryptocurrency exchange giant Binance has formally launched margin trading for most of its users following months of speculation. 


Long-Awaited Bitcoin Trading Feature Goes Live

In a blog post July 11, executives released the platform’s latest product, along with a dedicated guide on how it works. 

Margin trading, while available on several major exchanges to date, incurs a significant risk of funds loss if the trader controlling them is not aware of their technical characteristics.

“Margin trading is the latest development in Binance’s effort to push the industry forward and toward the freedom of money, expanding its trading offerings,” the blog post reads. 

“Margin trading allows traders to borrow funds to increase leverage, providing higher profit potential than traditional trading. However, this also comes with a greater risk, given the current volatility of the cryptocurrency market.”

The unveiling ends a period of several months during which Binance slowly dropped hints it was working on margin trading, followed by evidence of testing.

Risky Bitcoin Business

In June 2019, demand for leveraged financial tools tied to Bitcoin 00 and other cryptocurrencies is higher than ever, as markets return to levels not seen since before the 2018 bear market. 

Huge amounts of capital come and go at the hands of margin traders daily, social media users often noting how sudden movements in the Bitcoin price trigger giant liquidations in a matter of minutes. 

This week, a Bitcoin uptick saw $44 million worth of liquidations on derivatives giant BitMEX in just a single morning.

Margin trading essentially involves borrowing funds to use as collateral while betting on a token’s price moving in a certain direction. Should the bet go wrong, the trader faces liquidation.

Bitcoin Sheds 11 Percent

Binance’s product is now available to everyone with an eligible account; this means that those residing in the US, Syria, Iran, North Korea, Crimea, Canada, Japan, South Korea, and Cuba are currently unable to join in. 

The situation remained the same as Binance rolled out previous new tools such as its expanded decentralized exchange (DEX), while executives admitted that it would be impossible to prevent anyone from using a decentralized structure. 

News of the margin trading meanwhile went some way to stemming losses of Binance’s in-house Binance Coin 00 token, which delivered 24-hour losses of 6 percent.

Following a downturn in the Bitcoin price, altcoin markets have broadly slumped, shedding up to 20 percent overnight as BTC/USD fell by around $1500.

Last month, BNB had reached new all-time highs of close to $40 per coin.


What do you think about Binance’s margin trading launch for Bitcoin and other cryptocurrencies? Let us know in the comments below!


Images courtesy of Shutterstock, Twitter: @binance

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Čvn 27

Bitmex Sees $500 Million Bitcoin Short Liquidation in 24hrs

Bitcoin trading activity is breaking all-time records in terms of volume and open interest in Bitcoin futures. The latest trading activity has caused Bitcoin’s value to reach an 18-month high, forcing a huge amount of Bitmex short-sellers to abruptly liquidate their positions.


Bitcoin Futures Hits Record Highs 4 Days Running

CME saw a record volume of USD 1.6 billion and record open interest for Bitcoin contracts of USD 373 million, on June 26, 2019.

The value of BTC rose to almost USD 14,000, causing short traders to liquidate over half a billion dollars in a single day.

At the Chicago Mercantile Exchange (CME) Bitcoin futures trading activity has been growing spectacularly in recent months, with institutional traders showing increasing interest. On June 20, 2019, CME reported,

CME Bitcoin futures open interest reaches a record for a fourth consecutive day, with 5,827 contracts traded on June 20 (29,135 equivalent bitcoin; ~$280M notional) and a 25% increase from last Friday.

Cryptocurrency optimists take long positions, while traders who are bearish take short positions. According to Commodity Futures Trading Commission (CFTC) data, big money traders, such as hedge fund managers, have been taking bearish positions. The Wall Street Journal reports,

Hedge funds and other money managers held about 14% more bearish ‘short’ positions in CME bitcoin futures last week than they did bullish ‘long’ positions, according to a recent Commodity Futures Trading Commission report.

So, when on June 26, 2019, the cryptocurrency neared the USD 14,000 mark, traders who had taken short positions were forced to execute massive liquidations.

Small Investors Remain Bullish

Hedge managers and other large traders have been bearish on BTC since February 2019. However, a bearish position taken by a hedge fund manager does not necessarily mean a bet against the cryptocurrency, as The Wall Street Journal explains,

Such data don’t necessarily mean hedge funds are placing outright bets that bitcoin will drop. The short bets could also be part of hedging strategies: for instance, a fund with a portfolio of bitcoins might go short at CME as insurance against the value of bitcoin dropping.

Moreover, positive signals about BTC continue to abound. For example, small investors remain bullish. According to The Wall Street Journal report, traders with fewer than 25 BTC contracts hold long positions outnumbering short bets by four to one.

What do you think about the latest Bitmex liquidation figures? Let us know in the comment section below!


Images via  Twitter/@skew_markets, Bitcoincharts.com, 

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Čvn 23

CZ on India Bitcoin Ban: The more it’s banned, the more people want it

With bitcoin currently trading at a $500 premium in India, Binance CEO, Changpeng Zhao (CZ), argues that the nation’s decision to outlaw cryptocurrencies is only driving more people towards decentralized assets.


Binance Contests India Bitcoin Ban

Binance CEO, CZ, posted a tweet this week commenting on India’s latest anti-bitcoin bill, which seeks to dish out jail sentences to anybody caught holding cryptocurrencies.

The head of the world’s largest centralised crypto exchange argued that the newly proposed changes to ban cryptocurrencies will only serve to make “more people want it”.

This has become increasingly evident over the last couple of days, as Bitcoin’s spot price on Bitbns platform – one of the few remaining bitcoin exchanges in India – has been reportedly trading at around $11,120 . This price is more than $500 higher than the average BTC price in other markets across the world, and is currently $450 higher than Binance’s BTC spot price.

This substantial premium compared to the rest of the market highlights the overwhelming demand for BTC in the country.

Bitcoin Premiums On the Rise

Premiums aren’t a strange occurrence for cryptocurrencies in general, and only last week a $160 Bitcoin premium was identified on a Hong Kong exchange, Tidebit, as reported by Bitcoinist.  But the situation in India is particularly peculiar, given the government’s increasing anti-crypto stance. With fewer avenues to purchase bitcoin, the increasing scarcity and rising demand appear to be rocketing up prices.

$500 Bitcoin Premium India

Bitcoin continues to be the poster child for a real life manifestation of the Streisand effect – where the more people that try to suppress it, the greater it grows. Despite numerous efforts from Indian lawmakers to restrict cryptocurrency adoption in the country, it appears the appeal of the top-ranked cryptocurrency hasn’t stopped growing.

This broadening appeal has even moved beyond retail speculation into mainstream institutional adoption.

What’s Causing the Indian BTC Premium?

But why would there be an increase in demand for BTC in India? Well, the country’s government has stepped up its capital control policies in a bid to protect the Indian Rupee (INR). However, with the country’s rising debt profile and growing inflation, the exact opposite of the desired outcome in terms of INR stability seems to be the case.

Bitcoin, therefore, constitutes a haven currency for Indians to store wealth in case the INR loses value significantly.

Indians do not have easy access to cryptocurrencies in general. The country’s central bank banned commercial banks from facilitating transactions for exchanges back in 2018 so platforms have no access to fiat.

Despite a vigorous challenge instituted against the policy, the Supreme Court has yet to reach any verdict. Banks have even gone further to close down the accounts of customers engaged in cryptocurrency trading.

The emerging digital crackdown even goes beyond bitcoin with reports of platforms like Telegram and Reddit being blocked in the country. Some banks have even reportedly ceased offering support for PayPal payments.

Cease Crypto Trading or go to Jail

India is even preparing to pass a law that completely bans all forms of cryptocurrency activity in the country. This new law will reportedly prohibit the trading, holding, and mining of cryptocurrency.

Anyone caught in contravention of the law would face a 10-year prison sentence without the possibility of parole. Such a move would even place India above China in terms of anti-crypto regulations.

Projects like Facebook’s Libra might not be allowed to operate in India given the country’s banking laws which prohibit banking networks from facilitating cryptocurrency transactions. Crypto stakeholders in India say the government’s stance will only drive the industry underground.

Will Modi’s government be able to ban bitcoin completely in India? Let us know in the comments below.


Images via Bitbns.com. Twitter @cz_Binance, Shutterstock

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