Bitcoin soared to its highest in six months with the surge in other smaller cryptocurrencies also on account of technical forces and no apparent news playing as a catalyst behind the rally, Reuters said Tuesday.
Bitcoin soared to its highest in six months with the surge in other smaller cryptocurrencies also on account of technical forces and no apparent news playing as a catalyst behind the rally, Reuters said Tuesday. The original and biggest virtual coin Bitcoin rose by around 4.5 percent in early trading to hit its peak at $5,600 since November 18. Other major cryptocurrencies like ethereum and Ripple’s XRP which got pulled by rally in Bitcoin also gained.
Bitcoin price has surged by over 35 percent so far this month alone. Recently, Bitcoin price saw a 20 percent jump to the surprise of traders, who struggled to figure out the reason behind the surge. Reuters reported that the jump in Bitcoin price had underscored flaws in cryptocurrency markets.
As of now, the policy regarding cryptocurrency is under consideration in India. The government in December 2017 had formed a committee under the economic affairs secretary Subhash Chandra Garg to submit a draft report giving recommendations on usage of virtual currencies in India. The other members of the committee include Ajay Tyagi, chairman of the Securities and Exchange Board of India (SEBI) and RBI’s deputy governor B P Kanungo.
Economic affairs secretary Garg last year had said the committee would finalize its recommendations about cryptocurrencies which would require legal changes and regulatory assignments. He had assured that there would certainly be regulations by the end of financial year 2018-19. However, the draft report hasn’t yet been submitted to the Finance Minister.
The Reserve Bank of India time and again has cautioned against the use of virtual currencies including bitcoin. Finance Minister Arun Jaitley had earlier said the Government of India doesn’t consider cryptocurrencies as legal tender and will take all measures to eliminate payments using them.
Cryptocurrency first came into use in 2009 with Bitcoin as a digital form of payment. It is designed to be not owned and controlled by governments. It can help in anonymous transactions and be used for money laundering, tax evasion, terror financing and drug trade.