Bitcoin Trading Sideways
In early Wednesday trading, bitcoin is keeping firm hovering around the $55,000 mark. The consolidation has been persistent for several days after the world’s largest digital asset hit a record high on Saturday, breaking above $61,000.
The recent drop came amid reports that India is considering a ban on cryptocurrencies. Crypto investors are weighing the implications of India imposing a ban on the digital asset market but the news did not have a drastic impact on the crypto market. According to the report, Indian authorities will fine anyone who trades or holds cryptocurrency. The ban, if implemented, threatens to remove millions of participants from the crypto space.
Since the start of the year, India has been planning to build its own official digital currency. The measure against digital assets, which would be one of the world’s most severe anti-cryptocurrency policies, comes as a move to further India’s own agenda. While officials prepare the bill to be enacted into law, India’s Prime Minister Narendra Modi is also in favor of banning private cryptocurrencies like bitcoin. If the proposal is approved, India will be the first large economy to make cryptocurrency illegal.
Other Influences in the Crypto Space
The current slowdown in bitcoin’s price, according to bitcoin proponents, is a needed break from the recent rally, which quickly turned into an overheated market. Since the cryptocurrency ban in India was expected, it only had a limited effect on bitcoin’s pullback.
Additionally, today, the crypto market could be affected by the latest US Federal Reserve press conference. Jerome Powell, Federal Reserve Chairman, is scheduled to deliver a speech in which he will provide the central bank’s outlook on the economy, monetary policy, inflation fears, and the overall path to recovery from the pandemic. Comments by the US Fed chief are closely monitored by investors worldwide and they could have the potential to influence the flow of capital into the crypto space.