Bitcoin Price in India Today Slightly Up Following Sudden Market Crash Amid Panic

Amid news that the government will soon regulate cryptocurrency, crypto investors have been in a panic since a day ago. The prices of Bitcoin, Solana and other cryptocurrencies fell a day ago, but rose slightly on Thursday, November 25, as markets began to stabilize after the impact of the initial ripple. Two days ago, the government included a draft law that will be presented during the winter session of the House of Representatives. The bill, the “Cryptocurrency and Official Digital Currency Regulation” Act, sought to ban private digital tokens except for a few and offer the Reserve Bank of India’s central bank digital currency instead.

Cryptocurrency exchange WazirX has revealed that Bitcoin was trading at Rs 43,69,008 in the Indian market. This was slightly above the 34,00,000 mark that the world’s largest cryptocurrency hit on Wednesday, November 24. Cryptocurrency prices in the Indian market fell by as much as 20 percent on Wednesday as investors in a panic began selling their assets.

“Tuesday night, we saw a massive sell-off in the rupee (INR-crypto) market at WazirX. We saw a 15-20 percent drop in prices once investors engaged in panic selling. However, the market is showing a recovery and is at discounting. 3-4 percent is currently. A similar reaction was seen in January, when the contents of the bill were revealed.”

The government has said that a bill to ban all private cryptocurrencies in India will be introduced, with some expectation to boost blockchain technology in Parliament’s upcoming winter session. “The bill also seeks to ban all private cryptocurrencies in India, however, it allows some exceptions to promote the underlying technology of cryptocurrencies and their uses,” said the bulletin, which lists the legislative acts published on the Lok Sabha website.

The Reserve Bank is also planning to launch its own digital currency. “To create a facilitating framework for the creation of the official digital currency to be issued by the Reserve Bank of India,” she added. The Lok Sabha Bulletin did not provide any further details about Cryptocurrency and the regulation of the Official Digital Currency Act of 2021.

According to a report by CNBC TV18, former RBI Governor Raghuram Rajan said that of the 600 exotic cryptocurrencies present in the Indian crypto market, only two or three will remain after the enactment of the next bill.

“If things only have value because they are going to be more expensive, then this is a bubble,” Rajan told CNBC-TV18. “A lot of cryptocurrency has value only because there is a bigger idiot willing to buy.”

The former Reserve Bank of India governor compared the current craze regarding cryptocurrency in India to the tulip craze in the Netherlands in the seventeenth century.

But in the current scenario, experts are urging investors not to make a decision out of panic.

The crypto industry hopes that the government will involve industry stakeholders while drafting the bill. At CoinSwitch Kuber, we will follow the guidelines given by the government. As of now, I urge all crypto asset investors in the country to remain calm, and do their own research before coming to a quick conclusion. “Investors should wait for a government statement on this matter and not rely on secondary sources of information,” said Ashish Singhal, founder and CEO of CoinSwitch Kuber.

The government has repeatedly emphasized that it will not completely ban cryptocurrency in India, and only private coins will be regulated. A regulatory mechanism will be put in place so that encryption is not abused. Sources told CNN-News18 on Wednesday that the government is concerned about clandestine transactions taking place against cryptocurrencies — particularly their role in “hawala” and terrorist financing.

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