- News that India is preparing a bill to ban private digital currencies appears to have triggered a massive sell-off.
- SHIB and DOGE prices have plunged 20% overnight on WazirX, one of India's largest crypto exchanges.
- The pricing discrepancy between Binance and Indian crypto exchanges is driving arbitrage in Bitcoin and dog-themed meme coins.
India is working on a bill to regulate cryptocurrencies, to be presented in a parliamentary session on November 29. The news of the crypto bill has triggered fear, uncertainty and doubt among traders, triggering a sell-off on exchanges.
Indian crypto exchanges offer arbitrage opportunities to traders
A description of the Indian crypto bill was posted on the parliament's website on November 23, 2021. The bill's contents are not yet final; however, uncertainty and doubt have fueled bearish sentiment among Indian crypto traders.
The text on the website reads,
The bill also seeks to prohibit all private cryptocurrencies in India; however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.
India has had a complicated relationship with cryptocurrencies in the past. In 2018, the central bank- Reserve Bank of India adopted a ring-fencing approach. The restriction on the purchase and sale of cryptocurrencies was struck down in March 2020 by the country's apex court.
According to the latest update on the bill, India is working on a national digital currency and planning to ban private digital currencies.
India's largest cryptocurrency exchanges CoinDCX and WazirX, are witnessing a sell-off. Bitcoin price has plunged over 14% on WazirX, and dog-themed cryptocurrencies SHIB and DOGE have witnessed double-digit losses.
The price drop has opened an exciting arbitrage opportunity for traders. Investors are capitalizing on the opportunity to buy altcoins on Indian exchanges at steep discounts and selling them on global exchanges like Binance.
Traders across exchanges are concerned about a blanket ban on cryptocurrency trading once the bill hits the parliament.
The ongoing phenomenon of a difference between Bitcoin prices on Indian exchanges is similar to the Kimchi premium. Kimchi premium is the difference between Bitcoin prices in the US and South Korea.
FXStreet analysts have evaluated the Bitcoin price trend and predicted a drop to $53,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?