As bitcoin touches $61k Demand to make it legal tender grows

The crypto currency is expected to cross $100k in near future, say experts

Mumbai: Of late, the price of bitcoin, the undisputed czar of cryptocurrency world, has crossed the $61,000-mark for the first time, touching an all-time high, and experts say no wonder if it achieves another milestone of $100,000 in near future.

At current price point, a bitcoin is valued in the Indian currency at a whopping Rs 44.36 lakh, the highest in its 12-year history.

Hence, people active in the virtual currency world say it is high time the Indian government has lifted its ban on the crypto currency and come up with a proper regulation so as to make it a legal tender in the country.

While the current price rise can be attributed to the increased institutional exposure to bitcoin and global progress in fostering a friendlier legislative environment for cryptocurrencies, it is also the net effect of a large supply reduction coupled with increasing demand. This orchestrates another leg up in bitcoin price in the coming weeks and bitcoin's market cap eventually crossing the gold market cap. If we closely watch the indicators, Bitcoin has the potential to hit $100k by the year's end, experts opine.

Vikram Rangala, Chief Marketing Officer at ZebPay says, "After 20 years as a trader, I'm frankly not excited by this latest all-time high bitcoin price, but I do enjoy the rocket-emoji messages in my inbox. My old veteran's advice is still: education first. Learn why rallies happen and why they always end. What goes up must come down, so don't get distracted by price guessing (I won't say predictions). Never blindly chase a rally in any market."

I'll break my rule, he goes on, and give some bitcoin trading advice (no rocket emojis). When, not if, this rally corrects, we can guess that fresh buying will give support to the bitcoin price. However, buyers like bargains, so they may let the price drop a lot before pushing it back up. Smart investors guard against FOMO (fear of missing out) and prepare to hold on through a large drawdown. Only trade with money you can lose. If you can't stomach a 50 per cent drawdown, think twice. When you sell to exit that losing position, you may be selling to a smart buyer who is rupee cost averaging with a long-term plan. They'll get the profit you were chasing, because of better strategy and emotional control, explains Rangala.

Since mid-February, Bitcoin has witnessed a phase of drops and consolidation and crossed an all-time high of $61k, reflecting a larger trend with bitcoin's price rising more than 10-fold over the last year. Other popular cryptocurrencies including ethereum have also mirrored bitcoin's market movements and risen in value between 5 and 15 per cent over the last week. "I really hope that the speculations around a ban on cryptocurrency in India will soon be over and that the central government will take notice of the growing demand for bitcoins among investors closer home," says Monark Modi, founder & CEO, Bitex.