Amid the bitcoin scam making headlines in Karnataka, the value of this popular cryptocurrency has more than quadrupled in the last year, reaching more than 50 lakh rupees. The prices of cryptocurrencies have risen faster than those of the Indian stock markets.
While the BSE Sensex has grown about 40% in one year, Bitcoin, the most popular form of cryptocurrency, has quadrupled to Rs 50 lakhs. A year ago, this form of virtual currency was trading at around 11 lakh rupees. .
Ethereum, another type of cryptocurrency, has increased more than 10-fold over the same period. Bitcoin hit an all-time high of 51.24.975 rupees on November 10th.
In the last 10 days, the price of Bitcoin in the world market has increased by almost $ 10,000. The largest cryptocurrency by market capitalization rose to 91.6 trillion rupees in the last 10 days alone.
Analysts tracking virtual currencies say the race for cryptocurrencies is not over yet. “Technically, Bitcoin is targeting levels above $ 70,000 in the short term, which is very likely to break out to further consolidate the stock and, in the medium term, get the stock on track to hit the US $ 100,000 milestone in the medium term,” says Kshitij Purohit, lead Currency and Commodities at CapitalVia Global Research
Ethereum recently hit an all-time high of Rs 3.61,516. The price of Ether was Rs 34,000 a year ago. Both these forms of cryptocurrency bounced back after a major dip earlier this year. While Bitcoin traded at Rs 42,80,074 in April and gradually fell to Rs 26,05,588 in June as China threatened to ban cryptocurrencies.
Purohit adds that the jump in cryptocurrency is not essentially fundamental and has a lot to do with supply and demand. According to Statista research, many cryptocurrencies have reached their maximum supply level without the possibility of further extraction. Statista adds that Bitcoin is close to reaching its maximum supply of 21 million coins. It claims that 18.89 million Bitcoins have currently been mined. Others like Iota and Theta have reached their 100% supply level.
Despite the lack of regulatory clarity, the Indian cryptocurrency market appears to be growing. According to reports, there are 10.07 crore crypto users in India, the highest in the world.
