While Indian markets slightly edged to green following Donald Trump’s victory in the US Presidential Elections last week, the true winners in the markets were those invested in cryptocurrencies, as Bitcoin, Ethereum, and major tickers soared on Monday morning.
Earlier today, around 4am IST, Bitcoin hit a lifetime high of Rs 68.9 lakhs, more than doubling its price a year ago. The latest uptick in prices was seen across other major cryptos like Ethereum, which has maintained its level above Rs 2.5 lakhs since Friday.
The end of the pandemic years showed significant deceleration in the rally of cryptos, but it looks like the markets have got a new lease of life with the latest developments in world politics.
Donald Trump is expected to rain down oil sanctions against Iran once he is sworn into power in the US, along with doubling down on energy sanctions on Russia if the Ukraine conflict continues, according to research firm S&P Global.
His campaign promises also involved more tariffs on Chinese imports. Along with the election win, the Fed rate changes last week saw the US Dollar climb to new highs against major developing currencies. Such destabilisation in currency value for emerging economies could also be attributed to the rising demand for decentralised systems such as blockchains that govern cryptocurrencies.
Even the meme crypto, Dogecoin, jumped to above Rs 20 over the weekend and has managed to stay there. More than the hike, almost all cryptos that rose on the Trump win have maintained rather steady levels for a market renowned for its volatility.
India’s government has tried to regulate cryptocurrency and its trading in the country with the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, and updated taxing regulations. However, the fact remains that the concept of cryptos and the technology itself is based on “deregulation” and “decentralisation”.
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