Bitcoin And Crypto Prices Boost As India Embraces Cryptocurrency

After years of confusion over India’s attitude on cryptocurrency, Finance Minister Nirmala Sitharaman said on Tuesday that the nation would not attempt to prohibit the asset class instead will regulate and tax it at a rate of 30%.

India Embracing Cryptocurrency

The future of cryptocurrencies in India may be unknown, but that hasn’t stopped young Indians from embracing the realm of the so-called “fourth industrial revolution,” in which interconnection and smart automation, most of it based on blockchain technology, are driving human civilization.

Shaktikanta Das, Governor of the RBI, has frequently warned of macroeconomic instability and potentially “severe repercussions” if cryptocurrencies become widespread. The country’s monetary administration wants a comprehensive ban on crypto, similar to China’s, and will not allow these currencies to exist. India aims to implement a digital rupee as early as April 1 this year, according to Sitharaman. 

Investors Are Factoring In The New Fed Policies

As we watch the markets starting to bounce back, the idea that the January sell-off was caused by investors’ pricing in upcoming Fed monetary policy adjustments is rising. From their mid-month lows, the S& P 500 rose 6.27 percent, and the Nasdaq advanced 7.36 percent by the end of January.

The worry of the Federal Reserve tightening monetary policy is primarily to blame for the January sell-off in both the crypto market and stocks. Market downturns have traditionally accompanied increases in interest rates and more minor asset purchases by the Fed.

• Season Of Earnings

Today’s earnings releases from Alphabet, PayPal, and MicroStrategy may affect the bitcoin market. Meta (previously Facebook) will disclose results tomorrow, while Amazon will publish earnings on Thursday.

• Sliding Forward

With both India and Russia indicating that authorities would not prohibit bitcoin and giant corporations from pouring money into the space, a gap has emerged between markets and the story of digital asset adoption. This is most likely because Bitcoin has grown more connected with the traditional stock market. 

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