Bitcoin Backs Off Record High On Reports Of Indian Crypto Ban

Bitcoin’s new record-high price over the weekend was reversed on Monday morning. The world’s most highly valued cryptocurrency crossed the $60,000 mark during the weekend, marking its first time ever – peaking at $61,674 on Saturday. However, the this was followed by a sharp decline on Monday, falling by 4.4% to $57,847 at 9:15 AM in London.

This sharp change comes amid reports that India will pass a law banning cryptocurrencies altogether, potentially stopping its use in one of the world’s biggest markets.

A report published by Reuters on Sunday revealed that senior officials in India’s government are out to impose “one of the world’s strictest policies against cryptocurrencies,” which will fine anyone caught trading or even holding digital assets and also penalize Bitcoin miners.

After cresting $60,000, Bitcoin has suffered a new price shock as India mulls banning cryptocurrencies altogether.

As part of the proposed bill, cryptocurrency holders would have six months to have all their digital assets liquidated, after which they will be subject to penalties.

In case this bill is passed as law, India would become the first major economy to place a complete ban on the use of cryptocurrency.

As is the norm when when Bitcoin suffers a price shock, the broader cryptocurrency market was also affected on Monday morning. Ethereum, the world’s second-largest cryptocurrency, fell by 5.7%, trading at the rate of $1,785.49 per unit. The cryptocurrency market as a whole saw a 4.5% decline in just over 24 hours.

In spite of this latest price plunge, the crypto market is still performing significantly better than it did six months ago. Bitcoin has risen by over 400% during this period, owing to interest from billion-dollar firms, including Tesla and Square. PayPal’s adoption of cryptocurrencies also pulled it closer to the  has also helped to the mainstream payment sector.