Cryptocurrency is one of the most trending topics for the past week, especially after Dogecoin’s value began to surge. Joining the list is Bitcoin, whose value spiked past USD 48,000 (around Rs. 35,00,000) after Tesla announced its investment of USD 1.5 billion. Tesla Inc. is now the biggest company to back the cryptocurrency platform.
Tesla Invests In Bitcoin; Market Reacts
Tesla’s investment comes in after CEO Elon Musk showed support to Dogecoin. Soon after the announcement, Bitcoin’s trading increased by 7 percent, reveals the data from WaxirX, the crypto-exchange platform. Reports note the investment has helped Bitcoin surpass Tesla’s market capitalization of around USD 869 billion to touch USD 888 billion.
“Investments from international hedge funds have continued to rise and Indian exchanges’ daily volumes have also gone up by at least 20%. This got hotter when Tesla announced that it bought bitcoin and will start accepting it for payments,” explains Sathvik Vishwanath, co-founder and chief executive officer, Unocoin. “This pushed up prices by 15% in less than a few hours.”
Tesla’s investment in Bitcoin has further upped the cryptocurrency platform, especially after it announced it would accept Bitcoins as payments. Moreover, other cryptocurrencies like ethereum, tether, and ripple saw an increase of 3 percent during trading. Experts suggest the market might see some profit-taking.
Bitcoin Cryptocurrency: What It Means For India
Particularly in India, the minister of state for finance, Anurag Thakur, told the Rajya Sabha that the bill on private cryptocurrencies is being constructed. He also said this bill will be sent to the Cabinet soon for approval. A few days back, the Indian government listed a bill in the Lok Sabha to ban all private cryptocurrencies in India.
Tesla will be setting up a manufacturing unit in Bangalore, India, which is expected to boost the e-car market in the country. And now, Tesla’s investment in Bitcoin will also shape the cryptocurrency market in India. Reports note the inflow of money has significantly increased and given stability to prices after the announcement. With the new bill being drafted, it remains to see how the cryptocurrency market will react in India.
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