Crypto At A Crossroads

It's been nearly a year since India's central bank the RBI announced a blanket ban on all crypto businesses in the country. With elections in the country scheduled for April 11th, it seems things are heating up.

The battle over cryptoassets is being waged on several fronts in the world's second most populated country. The dialogue between the government and the supreme court now has a deadline of March 29th, for the finance ministry to propose a regulatory framework for digital currencies.

A hearing is set for this date, but as we've seen before can certainly be pushed back. Very likely the outcome of this hearing may directly influence the court's decision on how they handle the RBI ban, which is still being contested.

There's still no indication of what the finance ministry might do and there have been conflicting reports in the media with some saying they're considering an outright ban and others reporting that they're considering legalization and regulation.

On the streets and on social media, it's very clear that the crypto community is growing. Town hall meetings that regularly see 300 to 400 attendants will now be held in eight cities across the country and the #IndiaWantsCrypto campaign on Twitter entering the 145th day.

Traditional Markets

Though they remain largely directionless, it does seem like the stocks are regaining a bit of their former volatility. This graph shows the VIX volatility index over the last two years. Notice the uptick from the lows on March 11th (red circle), to today.

The Fed's supportive stance does allow investors to allocate more capital to markets, but with stock valuations high, it seems like they have better places to put it. Many are turning to bonds causing yields to drop at a rapid pace.

Others are turning to precious metals, which have been rising steadily since the start of the year.

Is the Fed moving Crypto?

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Please note: All data, figures & graphs are valid as of March 26th. All trading carries risk. Only risk capital you can afford to lose

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