- Bitcoin (BTCUSD on xStation5) experiences a massive U-turn after touching $3000
- Bitcoin and USDJPY diverge once again making a hefty discrepancy
- India considers issuing its own virtual currency as legal tender
Everyone who trades cryptocurrencies was probably taken off-guard on Friday when the Bitcoin price surged from under $3000 to almost $3800 just in hours. Let us recall that we mentioned importance of a support placed in the vicinity of $3000 just a while before Bitcoin begun reversing. There were no specific reports standing behind such a mind-blowing rebound, though some websites covering cryptocurrency’s news were cited that traders had shrugged off plans announced last week for China’s three main Bitcoin exchanges to halt trading amid a regulatory crackdown.
Even though the Bitcoin price saw a gargantuan reversal, there was no a similar move on the USDJPY. Both assets have tended to move in tandem of late, hence an increase of the virtual currency should, in theory, drag the USDJPY down but it hasn’t taken place so far. Of course, such a relationship is rather loose and not underpinned by fundamental justifications, either way it could warrant caution trading the BTC.
Beside marked increases seen across the virtual currencies, it’s worth taking a closer look at the report issued by the Indian government. It mentions a proposal to introduce its cryptocurrency similar to Bitcoin. According to the statement, the state-run digital currency will be called “Lakshami”, the name of the Hindu goddess of wealth, fortune, and prosperity. What’s more, that report came on the heels of the Reserve Bank of India (RBI) executive director who hinted the government may be introducing its own fiat cryptocurrency which will be issued by the RBI. That story suggests that India, one of the quickest developing economy in the world, is truly interested in deploying the cryptocurrency into the real economy which ought to be supportive of the whole cryptocurrency market.