Bitcoin (BTC) rose to the $ 61,700 area on Saturday and set a new record high with a target of $ 62,000.
However, as of today, BTC has withdrawn and fell below $ 56,000. It is currently trading just above the $ 56,000 level.
One of the main reasons that had an impact on the Bitcoin price in 2020 (apart from the growing interest from financial institutions and bullish reports from JP Morgan analysts) was the coin printing by the Fed and former US president Donald Trump. Although some market experts do not support this idea, it is a fact that people turn to Bitcoin to avoid inflation. The central banks of several other major countries did the same.
In addition, last week the US Senate approved another $ 1.9 trillion incentive program. The incentive program, with growing interest from major financial institutions, has helped Bitcoin take another step and approach the $ 62,000 level. Many in the crypto community assumed, like last year, that the incentive package will be used by their owners to buy Bitcoins. We can list the reasons for the ascension in this way. So what’s behind the current decline?
BTC dropped on Sunday after news came out that the Indian government intends to propose a complete crypto ban in the country by banning even users from holding Bitcoin and other cryptos. India had already launched a crypto ban in 2018 when the Central Bank of India (RBI) restricted banks from serving companies dealing with digital currencies, especially crypto exchanges. This caused most of the local trading platforms to switch to P2P trading, and many of them also withdrew from the country. However, RBI faced a lawsuit from the crypto community and lifted the ban in the spring of 2020.
News of the new ban may have affected the Bitcoin price.