Cryptocurrency Nov 25 update: Bitcoin stages recovery, surges 5%

As prices of the major coins crashed after the news, most experts suggested investors not to short sell their holdings. "Our belief is the government will move towards regulation rather than a ban ... So from our side, the message is: Do not short sell. And do not sell your crypto below the market price," CEO of ZebPay, Avinash Shekhar told CNBC-TV18.

Later in the day government sources told News18 that the government may not be thinking of any blanked ban on cryptocurrencies but it could bring legislation to regulate the crypto markets. A discussion on the bill was expected to happen in the Cabinet on Wednesday, but sources said it wasn't taken up. However, the Finance Ministry has circulated the note today, meaning it could be likely taken up for discussion soon.

The cryptocurrency bill is expected to be listed in the Winter session of the parliament. Here is the top news from the crypto market from India and the world, along with global coin prices with data from CoinMarketCap.

Bitcoin's weekly timeframe shows the chart traversing within the ascending channel pattern with the key support at $53,000.

The weekly timeframe for BTC trend shows the chart traversing within the ascending channel pattern with the key support at $53,000, a spokesperson from the WazirX trade desk said.

SC Garg, former Finance Secretary told CNBC-TV18, the time for digital currencies has come and once they are launched private cryptocurrencies will automatically go away. More here

Collins Dictionary has chosen NFT (non-fungible tokens) as the world of the year as the interest in the asset class surged. Collins has defined it as a "unique digital certificate, registered in a blockchain, that is used to record the ownership of an asset, such as an artwork or a collectable."

Bitcoin price fell to a low of Rs 33.5 lakh on Wednesday morning, per data from cryptocurrency exchange WazirX. It was down over 25 percent from the previous day’s close. However, the price of bitcoin fell only over 2.5 percent to $56,000 on Binance, the world’s largest exchange by volume. The price differential was because prices on different exchanges are driven by different own demand and supply figures, which opens an arbitrage opportunity. Read here

Raghuram Rajan, former RBI governor has said of the 6000-odd coins, only a handful will survive. It is because they will become pricier down the line and that is a bubble, Rajan told CNBC-TV18. He also compared the crypto mania to tulip mania in the Netherlands in the 17th century. Read here

The former secretary of the state, Hillary Clinton said the cryptocurrency markets need strong regulations to avoid manipulation at the hands of Russia and China. Clinton was speaking to MSNBC on the "technology of all kinds" and said states and non-states can use these technologies to destabilise countries.

US investment bank Morgan Stanley has increased exposure to Bitcoin by purchasing shares of Grayscale Bitcoin Trust. The bank increased holdings by over 60 percent in the second quarter of 2021.