India’s crypto ban spells doom for the market

India has banned cryptocurrencies and this could spell doom for the markets.The repercussions could be so big that the crypto market could lose up to 80% of its value. You are probably thinking, how can a ban by one country possibly affect the entire crypto market? Well, it’s quite simple, and here is how:

1. The ban has come at the worst time ever

If you have followed crypto related news for the last few weeks, then you know that there hasn’t been a shortage of bad news in this market. It all started last year when China banned ICOs. Then in early January, the country announced that it intends to put an end to centralized trading of cryptos. Within the same time frame, South Korea announced that it was introducing regulations banning anonymous trading of cryptos. Then to worsen the situation, there is the emerging situation that Tether, could be under investigation for creating coins out of nothing and using them to prop up bitcoin prices. All these factors have played a role in driving down the value of the crypto market by over 50%. Now that the Indian news have come out, the market conditions are poised to worsen. As things stand, Bitcoin has already fallen below the psychological $9000 price level and there seems to be no end in sight.In essence, the Indian news have made a bad situation worse, and the result might be a sell off of unprecedented proportions. We are already seeing this in the market at the moment.

2. Other countries could follow suit

If you have observed the crypto market closely for the last few months, you will notice that countries have simply been copying each other when it comes to crypto action. It started when China announced that it was banning ICOs. This was followed by similar calls in Russia before South Korea made its recent move of ending anonymous trading. This decision is not far from China’s intent to ban centralized trading. It is in the heat of this momentum that India has decided to completely ban cryptos. You see a pattern here? Now imagine what would happen if other countries followed India and banned cryptocurrencies. That would pretty much be the end of the market as we know it.

3. It exposes the soft underbelly of cryptos

Most of the people investing in cryptos are doing so under the assumption that these currencies are here to stay. However, this ban exposes a serious risk that cryptos face, and that’s the risk of a government shutdown at any moment. This could have negative implications on the market in two ways. Firstly, it could create panic selling especially for new comers who entered the market at higher price levels. Secondly, potential investors’ especially institutional ones might get jittery about getting into this market altogether. Either way, the volumes might reduce significantly and lead to a sustained bearish run, and we are already beginning to witness this. At this point, investors can only hope from some major positive news, otherwise the market might be in big trouble.