Despite the sudden surge in Bitcoin prices, the Union Finance Ministry in India has made it clear that the country will continue to follow global regulations when it comes to cryptocurrencies, unaffected by the current hype surrounding digital assets. A source within the Finance Ministry informed Business Today about India's commitment to prioritizing policies that serve the country's economic interests, regardless of external influences.
The Department of Economic Affairs is reportedly in the process of finalizing a paper on cryptocurrency, which is expected to be released soon. The recent rally in Bitcoin prices, with the cryptocurrency hitting a new record high of $94,078 on Wednesday, has been attributed to notable advancements in the crypto and financial sectors. Reports suggest that there are significant developments within the industry, including Donald Trump's media company potentially acquiring crypto trading firm Bakkt and BlackRock's iShares Bitcoin Trust introducing options trading, emphasizing Bitcoin's emergence as an institutional asset.
The rally in Bitcoin prices has been linked to various factors, such as speculation surrounding a potential crypto-friendly approach under a Trump administration and rumors of Microsoft considering incorporating Bitcoin into its treasury, proposed by Michael Saylor of MicroStrategy. The market reactions to these events have influenced altcoins, leading to a brief surge followed by a correction, though analysts remain optimistic about continued growth driven by institutional investors.