India: Need for Investment When Bitcoin Soaring High at US$50k

Analytics Insight explains the need for India to invest when Bitcoin is soaring high at US$50k

Recently, the global Bitcoin price in the cryptocurrency market soared high at the US$50k range, especially after two months. According to CoinMarketCap, this massive hit in Bitcoin price led to the cryptocurrency market capitalization reach around US$1 trillion. Currently, around US$33.6 billion Bitcoin swaps took place that increased by 14.5% over the last few weeks. The Cryptocurrency market has balanced a positive momentum in these few months since April.  But there is a concern of India in Bitcoin investment with the rules and regulations of the Government of India regarding cryptocurrencies.

Bitcoin has been experiencing a roller coaster ride since the beginning of 2021— hovering in the range between US$30k and US$45k. Investors, analysts, and traders are getting attracted towards the highest price of Bitcoin and have started aiming high at US$65k. But some are expecting a massive drop in the price or surpass the current record in the cryptocurrency market. Being a highly volatile and risky venture, mixed predictions are coming from the financial sector. Other popular cryptocurrencies like Cardano, Dogecoin, and XRP are advancing as well with Bitcoin price.

Investors are predicting two reasons for this sharp rise of Bitcoin— announcement of launching services for digital currencies in the United Kingdom and Coinbase will purchase US$500 million in cryptocurrency on the balance sheet as well as ready to allocate ten percent of quarterly profit into a crypto-asset portfolio. Previously the prices were affected by the Amazon job opportunity rumor and cryptic tweets from Elon Musk regarding payments in Tesla.

When international investors are celebrating the Bitcoin price at US$50k, the Indian cryptocurrency market is waiting for the cryptocurrency regulation bill from the Government of India. India is working with cryptocurrencies as the Government has realized that the cryptocurrency market is too large to ignore while it is thriving around the world. The Finance Minister, Nirmala Sitharaman, stated that the cryptocurrency bill is ready for the Union Cabinet clearance. Meanwhile, India has already started accepting payments and investments through some popular cryptocurrencies and multiple start-ups are building blockchain developments for the country. The crypto-craze is booming in the Indian market— the Unocoin Exchange is India's oldest cryptocurrency exchange platform that has allowed Bitcoin payments for several beverages through its official app.

The Government of India has formed an inter-ministerial panel on cryptocurrencies to examine the current issues regarding these digital currencies. The bill has allowed some exceptions for promotion of the cutting-edge technologies. The Reserve Bank of India has announced in May 2021 that it has considered bringing out a CBDC (Central Bank Digital Currency) for investments in digital wallets.

That being said, it is expected that soon investors can see India in Bitcoin investments in the Indian cryptocurrency market efficiently and effectively. Bitcoin price should remain positive around US$40k to US$60k or even higher to create a huge demand for the cryptocurrency market in the Indian financial sector. This can lead to driving the economic growth of India with less transaction fees on valuable assets.