There are reported resurgence of interest in cryptocurrencies in the Indian market.
The sudden rise can be linked to the latest Indian supreme court decision, which reversed banks’ embargo from dealing with cryptocurrency exchanges.
This ban was implemented by the Reserve Bank of India (RBI) in April 2018.
With this $11,000 numbers being recorded, experts recommend that those cryptocurrency users who have become dormant for quite some time are going back to the market,
According to the founder and CEO of Wazirx, Nischal Shettysaid, this is a renewed excitement in India.
Shetty also added that bitcoin’s price, which shoots up to the $11,000, showed that big jump of the trading volume.
Another executive, Sumit Gupta, the co-founder and CEO at Coindcx, another cryptocurrency firm, bids a different take for the current interest in bitcoin.
He added that the gush in bitcoin prices comes despite the flash for safe-haven assets that are also options to cash and stocks.
This shows a “decreased supply of available bitcoin” after the halving event in May, which is another factor in arrears the price rally.
The bitcoin block reward reached up to 12.5 bitcoins; however, it was reported to get lessened to 6.25 bitcoins. Thus, fewer bitcoins have been released onto the market to date compared with the same period last year.
Another expert, Ajeet Khurana, a member, Blockchain, and Cryptocurrency Committee of the Internet and Mobile Association of India (IAMAI), said that this could be attributed to market participants in his explanation for this trend.
He explained that the typical investor in any asset class is initially driven by asset price inflation. These traders in a particular asset class are driven by volatility and are looking to make money on price movements in both directions. For both of these, bitcoin has been a delight in the recent past.
Khurana contradicted this and explained that he also trusts that crypto investors do not invest in other asset classes. Ergo, the rise in bitcoin prices could fuel a surge in crypto market participants, covering the investors and traders.
Put, in his word, and he said that it is “the cult-like following of cryptocurrency gets strengthened when there is a rally in its prices.”
On the other hand, despite this, India is waiting for the full implementation of the working body for regularization on bitcoin. Besides, a draft government bill on cryptocurrencies seeks to criminalize the mere possession of cryptocurrency.
Subhash Chandra Garg, the former Finance and Economic Affairs Secretary of India, in an earlier report with the Indian crypto community earlier this month, that crypto-assets must be regulated as commodities.