New Delhi, Nov 21 (FN Agency) Despite the sudden rally in prices of Bitcoin following the US presidential elections earlier this month, the Union Finance Ministry has stated that the Centre will adhere to global regulations on cryptocurrencies, regardless of the current surge or hype. A source within the Finance Ministry informed Business Today that India will prioritise policies that are beneficial to its economy, without being influenced by other countries. The official also mentioned that the Department of Economic Affairs is finalizing a paper on cryptocurrency, which will be released soon.
On Wednesday, Bitcoin touched its new record high, closing at $94,078. The surge can be attributed to significant advancements in the crypto and financial sectors. Reports suggest that Donald Trump’s media company is exploring the acquisition of crypto trading firm Bakkt, while BlackRock’s iShares Bitcoin Trust has introduced options trading. The rise above $94,000 underscores Bitcoin’s growing importance as an institutional asset. The surge has been driven by factors such as the potential for a crypto-friendly stance under a Trump administration and the speculation of Microsoft incorporating Bitcoin into its treasury, as proposed by Michael Saylor of MicroStrategy.
The market’s responses to these developments have impacted altcoins, prompting a brief rally followed by a correction. Despite these fluctuations, analysts maintain a positive sentiment and anticipate continued growth fueled by institutional investors. The cryptocurrency market has experienced a surge of positivity in the wake of Donald Trump’s presidency, as there is anticipation that his administration will be supportive of cryptocurrencies. This optimism stems from the belief that a more crypto-friendly stance could lead to the removal of regulatory barriers that have impeded the market’s growth. On the other hand, in India, the landscape presents a different set of challenges. Despite witnessing a gradual increase in the number of cryptocurrency enthusiasts and investors in recent years, there continues to be a lack of regulatory clarity in the country.