They fall — only to rise again. This sounds apt for bitcoins. The bitcoin prices, after hitting a low of $35,000 on January 12 are regaining their strength again. On Thursday, the most-priced cryptocurrency is trading above the range of $44,000 a unit.
Although it looks like a healthy recovery, it is yet far less than the peak of $67,582 it had achieved on November 8, 2021. But since then, it has been declining — slithering to $53,700 on November 26; to $50,600 on December 7, and to $41,684 on January 8 this year, and eventually hitting the low of $35,000 on January 22.
Not only bitcoin, even Ethereum is also reporting healthy recovery with its current price close to its month-old price. On January 12, it was trading at $3,372 which fell sharply to $2,423 on January 27. On February 1, it closed at $2,792, further rising to $3,014 on February 5, and to $3,239 on February 9.
A similar trend was seen in Binance coin (BNB) which closed at $487 on January 12 but started to drop moving forward. It dropped to $390 on January 27, and further to $385 on February 1. But it started moving upward as it touched a peak of $414 on February 5 and further to $422 on February 9.
Bitcoin has been witnessing wild swings for past one month
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Back home in India, sentiment among crypto investors is anything but upbeat.
With investors already bogged down by imposition of 30 percent tax on crypto gains in the Budget 2022-23, there are reports that suggest the government is contemplating imposing GST on crypto mining. Even RBI's governor, Shaktikanta Das after announcing the monetary policy committee outcome, shared a warning of sorts for the cryptocurrency investors.
“Cryptocurrency is a threat to India’s macroeconomic stability and investors betting on it are doing it at their own risk,” he said.
So, we can hope for the cryptocurrencies to hang on to this new vigour, at least for some time, before flirt with gravity again.