Bitcoin, Ethereum prices on adrenaline rush with US lawmakers set to vote on crypto legislation

Kolkata: If you have been focused on equity and gold for high returns, then you probably haven't tuned in to cryptocurrency. Bitcoin, the world's most prominent cryptocurrency, redefined the concept of super profits by raking in more than 103% returns in the past one year. The reasons are not far to seek -- after Republican candidate Donald Trump was elected to the White House on November 5, 2024, cryptocurrencies has an unprecedented rise.

With Trump promising to make the US the global cryptocurrency powerhouse, the crypto era got a historic shot in the arm. He promised that the government will usher in legislation to pave the way for smoother transaction of cryptocurrency. "I will make sure the US is the Crypto Capital of the World. We are MAKING AMERICA GREAT AGAIN!" he had earlier posted on his Truth Social platform.

Within a few months, Trump is seen delivering on that promise with the House of Representatives, the lower house of the bicameral federal legislature, meeting this week to consider a bill popularly known as the 'Clarity Act'. The objective: to pave the way for a regulatory framework for cryptocurrency. It will also consider a bill to install a regulatory framework for stablecoins which are dollar-pegged cryptocurrency tokens. This piece of proposed legislation is known as the 'Genius Act'. The development around the two pieces of legislation have earned this week the label of "crypto week'.

On July 14, the news has sent Bitcoin prices on an adrenaline rush and it crossed $121,000-mark for the first time. ever on July 14. The world's largest cryptocurrency has more than doubled investors' wealth in one year, gaining over 103 percent during the period. Other cryptocurrencies to surge are Ethereum and Solana. Solana prices jumped about 3.5% to trade around $167 apiece on July 14, while Ethereum was in the zone of $3,046, up 3% on the same day.

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Bitcoin has zoomed an incredible 1,414% in the past five years. It was introduced in 2009. Though the market has been described as "overheated" and seems to be ripe for a correction, cryptocurrencies are ruling at their record highs. Analysts have also maintained that the long-term outlook of cryptocurrncies remain optimistic. There is also rising interest from institutions worldwide.

However, so far the Indian government and Reserve Bank of India have maintained a wait-and-watch policy on cryptocurrency. Though the Union finance ministry has imposed 30% tax on capital gains from cryptocurrency, it generally discourages investment in the asset on the ground that it is extremely risky and there is no information on what triggers and causes the risk. Moreover, at a policymakers level, the government said that cryptocurrency could be used for subversive, terrorist and money-laundering purposes.