The recent news of the elimination of the cryptocurrency trade ban, by the government of India, could be one of the catalysts of the recent Bitcoin bullish momentum.
On March 4, the Supreme Court of Inda eliminated the ban directed to the cryptocurrency trade. Although this event does not imply that now the Indian population will be able to acquire bitcoin, since the restriction of the government did not prevent people from acquiring cryptocurrencies.
It is true that this has the potential to generate high expectations in the market, increasing the chances of growth of adoption levels. Such a fact could lead to a reasonable increase in the price of the main cryptocurrencies in the market.
Recall that at the end of November 2018, India removed its tickets from circulation 1,000 and 500 rupees in an attempt to combat the black market and corruption.
At the time, this meant the withdrawal of $320,000 million from the country’s money flow, which represented 86% of the total monetary value in circulation.
If we analyze the data of the bitcoin graph, in periods of one hour, we can see that much of yesterday the market was doubtful, causing the price of the cryptocurrency to remain between $8,800 and $8,700. Then, around 6 pm UTC time, we can see how the price of the BTC took a bullish momentum that brought the value to highs of USD 9,140. This represents a yield of 3.5% in less than 12 hours.
Bitcoin has not been the only currency to demonstrate a significant bullish momentum. The ether (ETH) currently has a 3% yield, while Ripple’s XRP is underpinned by 2.2%, Litecoin (LTC) 3.4%, and Bitcoin Cash (BHC) 4%.
This may be an indicator that bullish sentiment envelops the cryptocurrency market. Although nothing can ensure that such is directly linked to the expectations generated by the event in India, it is striking that the price movements of several cryptocurrencies are so similar in such a short period of time.
Also, by quickly analyzing the price chart of the ETH we can see a pattern very similar to that registered by bitcoin.
During much of this March 5, the price of the ETH remained oscillating, operating in a range between $226 and $222. Then, around 1pm, UTC, the price of the cryptocurrency experienced an upward trend that it took it to a maximum of $234. Currently, the price of 1 ETH is $231.
In this way, the market brings up bullish expectations due to the price corrections that bitcoin has had in recent days. The potential boost may also be due to the panic generated by the coronavirus in several markets, in addition to the expectations placed on the bitcoin halving, scheduled for May 2020.
Nor would it be a surprise that the adoption of cryptocurrencies by a country with a potential market of 1.3 billion people fuels the bullish sentiment the market experiences.