Bitcoin — the largest cryptocurrency by market cap, which shot past $11,000-price mark per Bitcoin on Saturday, the first time since March last year even as it has bottomed out at $3,222 on December 15 last year and has grown steadily since then is because of India. The currency with a current market cap of $190 billion as per crypto data provider CoinMarketCap plunged throughout 2018 after peaking at $16,832 on January 16, as per Cointelegraph.
While the cause for the sudden increase in price is being looked at by the cryptocurrency analysts (with Facebook’s Libra launch and Bitcoin halvening event next year as potential reasons), the currency’s gradual “price hike has been led by India, with Bitcoin trading at a $500 premium on the few remaining local exchanges,” Forbes reported, as the Indian government’ intent to ban Bitcoin and cryptocurrencies and decentralise internet services could have “a so-called Streisand effect.”
Streisand effect is referred to an event where the information, which is attempted to be hidden or censored, backfires to become even more public.
Facebook’s launch of its own cryptocurrency Libra — a potential rival to Bitcoin, which has been in the news since December last year, along with other tech giants such as Apple and Twitter’s experiments in crypto and Bitcoin is seen reigniting cryptocurrencies’ growth.
In India, the demand for Bitcoin has grown steadily since March last year as its volume surged from 82 to 235 in June this year, as per Coin Dance data on Bitcoin trading service LocalBitcoins.
Nonetheless, market experts maintain that Bitcoin could go up further in price, due to Facebook’s Libra, back to its days of boom in 2017 — going over $19,000 on December 17, 2017.
Bullish investors believe if Libra becomes a trusted payment mechanism then people are also more likely to trust Bitcoin as a reliable long-term store of value, a digital gold, according to Glen Goodman, author of Bitcoin and cryptocurrency trading advice book, The Crypto Trader.
Bitcoin price in India stood at around Rs 7.5 lakh per Bitcoin on Sunday. Globally, following Bitcoin, the top cryptocurrencies in market cap include Ehtereum ($33 billion), XRP ($20 billion), LiteCoin ($8.7 billion), Bitcoin Cash ($8.6 billion), EOS ($6.8 billion), Binance Coin ($5.3 billion), Bitcoin SV ($4.2 billion), Tether ($3.5 billion), and Stellar ($2.5 billion), as per CoinMarketCap.