Bitcoin Surges, Experts Recommend Caution

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Breaking a three-month stagnation, Bitcoin climbed back above $ 50,000 on Monday for the first time and hit a daily high of $ 50,152.24. It was trading between $ 30,000 and $ 40,000 since mid-May before climbing 2.5% today. Bitcoin had plunged in May after hitting a record high of $ 65,000 in mid-April.

Nischal Shetty, founder and CEO of crypto exchange WazirX, said that $ 50,000 is a psychological number for Bitcoin.

The crypto community is thrilled to see this mark crossed and has warned investors to see if this price point holds or falls again. He added that the global adoption of crypto is increasing every month. This naturally put pressure on Bitcoin’s supply, causing prices to rise.

Ashish Singhal, founder and CEO of crypto exchange Coin Switch Kuber called the increase an indication that retail and institutional investors were bullish for the asset over the past year.

Chainalysis recently reported that India ranks second in the world for cryptocurrency adoption. Indians are increasingly aware of Bitcoin and other cryptocurrencies, residents of Tier II cities and III driving adoption This massive adoption signals a positive outlook for Bitcoin prices, ”Singhal said.

ZebPay Co-CEO Avinash Shekhar said, “We recommend Rupee-Cost-Average (RCA) in crypto assets as a long-term investment strategy.

By using RCA, investors can get an average entry price for the asset and achieve better long-term returns. SIPs are one way to achieve this and we have launched a new product, ZEBB, to promote this long-term investment strategy. Anyone can start a Bitcoin or Ether SIP on ZEBB from only Rs100.

Shekhar said: “The current market push was expected by strong supporters of this tech asset class after the temporary sell-off which was a short-lived FUD in the market. BTC absorbed just about all the negative news over the course of of the last quarter and yet, did not mitigate the impact on the institutional inflow of money into this technology, giving a clear message about the strong fundamental value of the asset.

He added that Bitcoin is basically a very strong asset with a reliable foreseeable future. The recent sale was a temporary uncertainty due to negative market news regarding the position of some respective countries on the mining aspect of the asset. Bitcoin has just returned to its growth path back to its base of strong fundamentals, where all types of investors, from retail to institutions, have shown immense interest and vision.

According to the Global Crypto Adoption Index, global crypto adoption increased by 880% between June 2020 and July 2021. India ranks second in terms of global crypto adoption behind Vietnam but ahead of developed countries like the United States and the United Kingdom.

Market experts estimate that the total value of cryptocurrencies was $ 2.17 trillion on Sunday, and the rally was supported by cryptos like Cardano, Binance Coins, Dogecoin and Solana.

Singhal said, “The volatility of the cryptocurrency market is characteristic of a market that is still in its infancy. It is therefore preferable for investors to invest in small amounts which may generate good returns but may also involve risk. Investing a particular amount regularly and in a disciplined manner over the long term can create wealth for investors.

Notably, the cryptocurrency plunge came with last week’s announcement by Indian Finance Minister Nirmala Sitharaman that India’s cryptocurrency bill has ended and awaits the nod of the Cabinet of Ministers. ‘Union.

Nischal added that the crypto ecosystem in India needs positive regulations. Guidelines on what crypto startups should adopt, such as KYC, AML, Customer Support and more, would be helpful.

Likewise, Singhal added “the Indian cryptocurrency industry which will promote not only the cryptocurrency space, but also the technologies, like blockchain, associated with it, creating an important place for India on the map of world technology leaders. The regulation will bring certainty to interested investors who have hesitated so far due to the lack of clear regulation and will encourage greater adoption of the cryptocurrency in the country. “

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