$52,000: Bitcoin hit a new all-time high of over $52,000 a unit last week before dropping by nearly 17 per cent on Monday.
- The cryptocurrency, which has seen a wild rally since Tesla CEO Elon Musk drove it with his social media post that his company would start accepting payments in Bitcoin, declined on Monday again on Musk’s remark of an overheating in the price.
- Experts says Bitcoin has seen increased demand from institutional investors. Apart from Tesla, companies like Square and MicroStrategy have also been buying the digital currency.
- At the same time, many experts have warned that investors must not forget that Bitcoin tends to have extreme price swings. For instance, the cryptocurrency rose to nearly $20,000 in 2017, only to lose around 80 per cent of its value a year later.
- Bitcoin price volatility is not the only risk Indian Bitcoin investors face. A fresh ban on cryptocurrencies in India might soon become a reality, as the government is finalising new legislation in the cryptocurrency and token space.
- Crypto exchanges want the government to reimburse the seven million Indians who are holding over $1 billion worth of cryptocurrencies, in case the ban is implemented.
- Experts also believe that Indian cryptocurrency investors may take to peer-to-peer transfers to dispose of or to continue holding on to their crypto assets in case the government goes ahead with the ban.
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