NEW DELHI: Bitcoin prices rose 6.9% to $53,813 on Tuesday, adding $3,546 to its previous close and reclaiming market capitalisation of $1 trillion, as per data available with WazirX.
Sathvik Vishwanath, co-Founder and chief executive, Unocoin, said last week was one of the rare stable weeks for a lot of cryptocurrencies. "This also marks something significant - that the past rise in prices does not constitute a bubble. It is also important to note that there was no big bang news internationally that could have fueled the growing demand for cryptos."
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The Indian government has showed some much-needed clarity on regulations for cryptocurrencies.
"For the first time, the Finance Minister has given out the opinion that the opportunities that the crypto industry is giving to India is not negligible and hence the government would consider a balanced view instead of outright outlawing it. This has added to confidence of crypto enthusiasts in the country and we shall look forward to more positive regulations for the country in the future. March is a month where a lot of Indians worry about how they want to deal with income tax for the year and we are very likely to see consolidations, profit/loss bookings. On the other side, this is not the time for corporates to get into the crypto space for the first time and they all would wait for April to begin," said Vishwanath.
Currently, Bitcoin commands a market capitalisation of $1.01 trillion. On 19 February, it had hit a record high of $53,683.
Ethereum traded at $1,841.05 today, up more than 6%, and a market valuation of over $211 billion. Other major cryptocurrencies also moved higher, with Stellar up more than 3% at 1035am.