Bitcoin (BTC) price is leading the crypto market lower on rumours that India is considering a crypto ban.
Fundamental analysis: A possible crypto ban in India sends crypto market lower
After hitting a new all-time high of more than $60,000, Bitcoin dropped below $55,000 with one of the possible reasons behind this move lower are rumours that the Indian government could completely ban cryptocurrencies in the country.
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The top cryptocurrency hit a new peak with conviction as it gained momentum in unchartered territory, however, opposite indications emerged in India. Speculations and reports that India is planning to impose an outright ban on crypto have been there for a few years now, but this time it was different as news of a new draft bill specifying the ban emerged.
Furthermore, rumors appeared that a senior Indian government official has leaked certain details about the bill which alleges that anyone found mining or holding crypto in India would face asset seizures, fines, or even prison sentences.
According to the leaks, the bill includes a 6-month grace period that would allow anyone owning cryptocurrencies to dump their holdings. The news of the ban caught investors off guard, especially now when Bitcoin is at its strongest point ever.
Invezz reported recently that India might soon introduce a Bitcoin trading tax, requesting that crypto users pay 18%.
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Technical analysis: LUNA price rotates lower
A move lower in Bitcoin price has also facilitated a mild correction in most of the altcoins as well. Terra (LUNA) price is trading over 10% lower today after it created a series of five daily candles that resulted in gains of 115%.
Overall, LUNA has so far recorded a stellar performance in March. The digital asset is now up over 230%, just a month after it gained nearly 267%. Looking lower, the price action may extend the pullback towards the $15 mark, where 38.2% Fibonacci retracement is located. The higher targets for traders buying Terra coins are dependent on where this correction ends.
Bitcoin plunged below $55,000 this week on the rumors that the Indian government has drafted a new bill detailing a complete ban on cryptocurrencies in the country. Some other altcoins joined BTC in moving lower, with LUNA price down over 10% on the day.