Bitcoin Drops After Record High and Amid Reports of a Ban in India

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Last weekend, the leading cryptocurrency in the world, Bitcoin, reached its all-time high of $61K. This happened just after US President Joe Biden signed a $1.9 trillion stimulus deal and announced faster vaccination. Bitcoin has never reached such heights and there were legitimate rumors and expectations that it could shoot over $100K soon.

That didn’t happen, of course – it would be too big of a jump. Bitcoin dropped sharply after the weekend as the world digested the latest stream of news regarding the cryptocurrency. More specifically, India has designated a potential ban on all cryptocurrencies, something that has been in the works for a long time.

Steep Economy Recovery Behind Bitcoin’s Rise?

In the past 12 months or so, Bitcoin has been on a roll. The price has been going up together with widespread adoption in numerous sectors. The online gambling industry is flourishing with it, with new and improved Bitcoin casinos popping up left and right. Experts are adamant that this, along with the expected steep economy recover from the pandemic, are the factors fueling Bitcoin’s price heights like the last one.

It goes without saying that its highly volatile nature has stayed intact. Whenever a new law or ban is pondered around the world, Bitcoin’s price moves up or down. India has been flirting with cryptocurrency bans for a long time, and it seems that its finally on the move. The Indian government has renewed interest in banning cryptocurrencies, sending Bitcoin’s top price down.

Despite the threats, BTC transaction volumes in India are at an all-time high. Indian residents are reaping the benefit of the cryptocurrency, using it in Bitcoin casinos and shops quite often. While no official stats can be found, India seems to be one of the world’s top Bitcoin hotspots.

Even with the pullback, investors are adamant that Bitcoin’s price remains on the upside. Many expect it to hit new heights soon, with further gains taking the biggest cryptocurrencies to uncharted territories.

Broader Strokes

One of the negative sides of Bitcoin is that whenever it falls, it drags the whole market with it. When Bitcoin dropped earlier this Monday, the overall cryptocurrency market dropped by 4.5%. Ethereum was down over 2% too, which means that Bitcoin moves the needle in more ways than we could imagine.

Whether crypto cynics like it or not, Bitcoin is becoming a key cog in the global financial wheel. The world is slowly turning its attention to decentralized finances. Financial regulators are still hesitant to draw up laws for the crypto sector, but many countries are adopting cryptos like never before. The price fluctuations are dealing massive blows to crypto investors, yet many industries are thriving because of it.

There’s no question that Bitcoin is becoming one of the world’s leading royalties. It’s more valuable than gold, at least in the gold run, so people will continue adopting it. India surely loves cryptos, so even with the ban ahead, the transaction volumes are swelling, and that can only be a good thing for the crypto market.

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March 17, 2021: • No Comments

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