Bitcoin nosedives after weekend record peak as India mulls a potential ban on cryptos

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Bitcoin nosedives after weekend record peak as India mulls a potential ban on cryptos

On Monday, bitcoin, the original cryptocurrency and the world’s most popular digital asset, fell from a record peak reached over the weekend after media headlines had unveiled that the Indian Government of PM Narendra Modi of Bhartiya Janata Party, had been contemplating a potential ban on cryptocurrencies, putting the lid on a sizzling rally of crypto assets, a majority of which was entirey meaded out of speculative bets.

If truth is to be told, the high-flying digital asset was ramping up its blistering rally further over the weekend and had hit a record peak of $61,781.83 on Saturday after the US President Joe Biden had signed off his $1.9 trillion American rescue bill into a law, stoking possibilities that more traders, both institutional and retail, would heavily price in on the digital asset since bitcoin has long been considered as a hedge against a higher inflation.

Nonetheless, late on Saturday, bitcoin set off an abrupt downward spiral after media headlines had quoted a top Government official as saying that India, the world’s fifth-largest economy by nominal GDP (Gross Domestic Product) and the third-largest by PPP (Purchasing Power Parity), had been working out a bill that in effect would penalize issuance, mining, trading, possession and transferring of cryptocurrencies as the country holding more than $1.4 billion worth of bitcoins despite threats of a Government ban, had been architecting a framework of its own digital currency as promised in a Government vendetta back in January this year.

Bitcoin slides from record peak as India mulls potential ban on crypto assets

Citing statistics, as global investors had stomached the media topline that Indian Government might introduce a bill as early as this month to ban cryptocurrencies in the country, bitcoin was last trading down by 5.3 per cent to $55,865 in late-afternoon US trading hour on Monday, while other smaller crypto assets such as Litecoin was trading 0.50 per cent lower to $201.00.

Apart from that, Ethereum, which has been subject to a slew of lawsuits back in 2019s over unauthorized issuance of crypto assets or ICOs (Initial Coin Offerings), was up by 0.44 per cent to $1,797.20. Meanwhile, addressing to a potential ban on crypto assets in India, President of AVA Labs, a blockchain-based platform to create fintech applications, John Wu said, “Renewed interest from the Indian government in banning cryptocurrencies led to the initial drop from the $60,000 range down to $56,000”.