Bitcoin, Ethereum Recover Even as Ban on Private Crypto Looms

Investors Hold Their Breath After Fears of Crypto Ban as Bitcoin, Ether Recover

Bitcoin, along with almost every other cryptocurrency, fell on Indian crypto exchanges on Wednesday, but as the wind cleared the impending ban on the cryptocurrency, panic among investors subsided. Bitcoin is currently back at $59,174 (approximately Rs. 44.07 lakh) on Indian exchange Coinswitch Kuber, recovering 15.5 percent after a massive 25 percent drop early Tuesday night. Meanwhile the most popular cryptocurrency on global exchanges like CoinMarketCap is valued at $57,516 (roughly Rs.42.8 lakh). The mid-week fall may have bridged the gap between the valuation of bitcoin on Indian exchanges and global exchanges, but investors in the country are still a bit skeptical about the fall.
Ether is more important than the bitcoin boom. The second most popular cryptocurrency has reached a higher value than Monday, after a drop of more than 20% in the early hours of Wednesday. Ether is currently valued at $4,424 (approximately Rs 3.3 lakh) on CoinSwitch Kuber, while the second largest cryptocurrency by market capitalization on global exchanges is estimated at $4,295 (approximately Rs 3.2 lakh). Gadgets 360’s cryptocurrency price tracker shows that the Ethereum-based cryptocurrency has seen a nearly 7.5 percent drop in value over the past two weeks, reaching $4,870 (roughly Rs. 3.61 lakh).
“The crypto market has been very volatile over the past 24 hours. Bitcoin, the largest cryptocurrency by market cap, has crossed the $58,000 mark. Apart from the top three cryptos, most others remained in a range bound movement. If BTC manages $58,000 (around Rs 43.2 lakh), the coming 24 hours could be a good session for the bulls,” expects Edul Patel, CEO and co-founder of Mudrex, an AI-powered crypto investment platform.
Wednesday’s market tracker was dripping in the red, so today’s day is just the opposite.
Cardano, Tether, Ripple, Polkadot and Litecoin have all increased in value over the past 24 hours, while the only loser on the charts appears to be Monero – the top 50 coin by market capitalization and one that has risen 83 percent in valuation over the past year.
Meme coins Dogecoin and Shiba Inu have also been recovered. Dogecoin is currently trading at $0.22 (approximately Rs.16.69) with an increase of 1.83 per cent over the last 24 hours, with the Shiba Inu rising 0.57 per cent to $0.000041 (approximately Rs.0.003041).
Prime Minister Narendra Modi’s government has introduced a bill that would ban the operation of all private cryptocurrencies in India. However, the bill does not clearly define what constitutes a “private” cryptocurrency. That said, it is worth noting that India’s banking sector uses the term “private” to refer to any entity that is not controlled by the government. Investors also want clarity on the potential taxation of transactions and holding crypto as an asset.
It is too early to say whether the bill will eventually be passed or amended. For now, the bill will go ahead for the winter session of Parliament, which begins on November 29.
On the subject of taxation, South Korea is exploring ways to tax non-fungible tokens (NFTs) amid controversies over crypto regulations in the country. NFTs are virtual collectibles that are tied to real-life objects such as games, artwork and music and ownership is locked and transferred on the blockchain.