Cryptocurrency Market Nosedives Amid Reports of Indian Government Ban

The crypto market price charts were drenched in red on Wednesday, November 24 following reports that the Indian government might ban cryptocurrency. With a drop of 25.51 percent, Bitcoin's value currently stands reduced to $46,601 (roughly Rs. 34 lakh) on Indian exchange CoinSwitch Kuber. On an international level, the world's oldest crypto has managed to maintain values above $50,000 (roughly Rs. 37.2 lakh), where usually the India prices are higher than global ones. On CoinMarketCap, Bitcoin is presently trading at a dipped value of $56,377 (roughly Rs. 42 lakh). This is the first time in recent times that Bitcoin prices have moved so further away from its all-time high, which as of November 9, was $68,327.99 (roughly Rs. 50.5 lakh).

Given the stressed market mood, Ether also registered a drop of 20.83 percent in its trading value. Each token of Ether is presently priced at $3,622 (Rs. 2.6 lakh) as per Gadgets 360's crypto-price tracker.

While the two most valued cryptocurrencies fell face down in this market plunge, other altcoins also could not escape the negative impact.

From Tether, Cardano, and Ripple to Polkadot, USDCoin, Dogecoin, and Shiba Inu — all major cryptocurrencies have lost values substantially in recent hours.

Among the scare altcoins that managed to register minimal hikes, Doge Token and Floki Inu made it to the stands.

The crypto market was left shaken by reports that the Parliament agenda includes a bill seeking to prohibit all private cryptocurrencies from operating in the country. The agenda also noted that the government wishes to bring an official digital currency for India. However, it should be noted that this exact same bill was also listed for the budget session, but did not get discussed at the time.

“To create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses,” the agenda reads.

In the upcoming winter session of the Indian parliament that commences on November 29, “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” will be introduced for consideration and passing.

Multiple studies by research firms like Statista, Hootsuite, and TripleA — India is home to over a 100 million crypto holders.

The news of Prime Minister Narendra Modi's government looking to restrict the crypto space has also triggered ripples among Indian enthusiasts.

Among other hashtags, #WazirX, #CoinDCX, #BlackBill, and #CryptoBan are trending on Twitter in India.

In September, China had also imposed a blanket ban on all crypto-related activities.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.