Bitcoin at record high of $1400 on rising global acceptance; all eyes now on India

A beer sits next to a Bitcoin sign on display at a bar in central Sydney, Australia, September 29, 2015. REUTERS/David Gray/File photo - RTSKT41

Fueled by increasing global acceptance, the price of bitcoin skyrocketed above USD 1,400 and touched an all-time high of USD 1,463, as per CoinDesk price index.

The rally is due to the spike in global trading volume, especially from Japan, where the cryptocurrency was recently recognised as a currency.

After seeing new highs in January, bitcoin's price dipped for several weeks after the People's Bank of China (PBoC) cracked the whip on the country's exchanges and the US SEC rejected the Winklevoss exchange traded fund (ETF) proposal.

Previously, the currency had peaked at USD 1,325.81, hours before the US SEC verdict, but later fell below USD 1,000 in March after the rejection, as per the CoinDesk Bitcoin Price Index (BPI).

But in April, after being accepted as a payment method in Japan and news of Russia seeking to regulate the digital currency, the price has been steadily gaining momentum.

In India, the government has set up an inter- disciplinary committee chaired by the special secretary (Economic Affairs) to examine the existing framework with regard to virtual currencies.

"The Committee will (i) take stock of the present status of Virtual Currencies both in India and globally; (ii) examine the existing global regulatory and legal structures governing Virtual Currencies; (iii) suggest measures for dealing with such Virtual Currencies including issues relating to consumer protection, money laundering , etc; and (iv) examine any other matter related to Virtual Currencies which may be relevant," a press note said.

The Committee is to submit its report within the next three months.

If India decides not to declare bitcoin as illegal and lifts restrictions on digital currency payments, it would further strengthen the confidence in bitcoin which could lead to new highs in the coming days.

Bitcoin prices are currently averaging at USD 1,459, according to data from the BPI.

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