Bitcoin price Recovery After Nearing Towards $50,000
Bitcoin traders advised caution as prices fell toward $50,000 for the first time in two weeks, while the options market braced for uncertainty ahead of a record $6 billion contract expiration on Friday.
Markets were lifted on the news of Microsoft's decentralised identification network, which had been deployed on Bitcoin's main net. The four-year-old project aims to make it easier for organisations and individuals to be found online without relying on a third party.
The second piece of news was that KiwiSaver, a New Zealand pension fund, had put 5% of its $350 million funds into bitcoin, added to the rise.
At 3:19 p.m. ET on Thursday, the largest cryptocurrency was unchanged to marginally lower at around $52,100. Prices had previously dropped to as low as $50,360. Since March 8, Bitcoin hasn't traded below $50,000, a long way from its all-time high of $61,000. Bitcoin (BTC) trading around $53,488,66 as of 03.10 Pm IST on Friday.
In the press release authors at the General Service Administration (GSA) of the United States government are gushing about "cryptocurrency spring fever." It's possible that the agency's decision to auction off more than $300,000 worth of bitcoin next week isn't a coincidence.
Indian government has made its first move to regulate bitcoin and other cryptocurrency by making it mandatory for all companies in the country to disclose their dealings in virtual currency in their balance sheets. The directive was passed by the ministry of corporate affairs (MCA) on Thursday. The step is likely to change cryptocurrency dealings in India and is expected to bring more transparency between investors and government.
As per the directives, the companies will have to disclose profit or loss on transactions involving cryptocurrency or virtual currency and the amount of holding. They will also have to share details of deposits or advances from any person for the purpose of trading or investing in cryptocurrency or virtual currency.
The amendments have been made to Schedule III of the Companies Act, 2013 and will be applicable from the upcoming financial year, MCA said in a notification. The decision comes amid government proposals to regulate cryptocurrency in India or impose ban on certain transactions.
“This a major step towards regulating the crypto assets in India and will bring in lot of transparency in reporting/filing of crypto investments. The move will boost institutional adoption of crypto assets in India and will take Indian crypto industry to the next phase of growth,” Shivam Thakral, CEO, BuyUcoin said.
Over 7 million investors are believed to have put more than $1 billion in cryptocurrencies in India. This makes it really difficult for the government to impose a blanket ban but more measures that give RBI better control, are expected.
