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Is This 1 New International Development a Reason to Buy Bitcoin and XRP With $1,500?

Is This 1 New International Development a Reason to Buy Bitcoin and XRP With $1,500?

  • 18.03.2025 13:32
  • msn.com
  • Keywords: Coinbase Global, Bitcoin

Coinbase's permission to operate in India could boost Bitcoin and XRP demand due to India's large population and high inflation, though benefits may take years to materialize.

Coinbase NewsCoinbase ServicesCOINsentiment_satisfied

Estimated market influence

Coinbase Global

Coinbase Global

Positivesentiment_satisfied
Analyst rating: Buy

Coinbase has received permission to operate in India, which could lead to increased adoption of cryptocurrencies like Bitcoin and XRP.

XRP

Positivesentiment_satisfied
Analyst rating: N/A

The potential for lower fees and faster transactions through XRP could attract users from India's large remittance market.

Context

Business Insights and Market Implications Analysis

Key Developments

  • Coinbase's Entry into India: Coinbase received approval from India's Financial Intelligence Unit (FIU) to operate, marking a significant step in its expansion efforts despite past challenges in the Indian market.

Market Impact

  • Bitcoin:

    • Inflation Hedge: With India's average annual inflation rate of ~7%, Bitcoin's limited supply makes it an attractive hedge for Indian investors seeking alternatives to the volatile Indian Rupee.
    • Market Size: Bitcoin's $1.6 trillion market capitalization indicates that significant buying pressure would be required for price appreciation in the short term.

  • XRP:

    • Remittance Use Case: India received $129 billion in remittances in 2024, with high fees and delays driving interest in XRP's faster and cheaper cross-border transactions.
    • Market Size: XRP's market capitalization of over $135 billion suggests similar challenges to Bitcoin in terms of price movement.

Growth Projections

  • India's Crypto Market: Estimated at $2.6 billion in 2024, with an expected annual growth rate of 18% for the next eight years.
  • Regulatory Considerations: A proposed 30% tax on cryptocurrency transactions may hinder adoption unless revised.

Strategic and Competitive Dynamics

  • Coinbase's Role: As one of the first major exchanges to enter India, Coinbase is poised to capture a significant share of the growing market, benefiting both Bitcoin and XRP.
  • Long-Term Effects: The impact on Bitcoin and XRP prices is expected to be gradual, with meaningful gains potentially taking years to materialize.

Risks and Challenges

  • Regulatory Uncertainty: Ongoing reforms in India's crypto sector could influence investor behavior and market growth.
  • Market Saturation: The competitive landscape may become more crowded as other exchanges follow Coinbase into the Indian market.

Conclusion

The strategic move by Coinbase to enter India presents a long-term opportunity for both Bitcoin and XRP, driven by inflation hedging and remittance use cases. However, the immediate impact on prices is likely minimal due to the large market sizes of these assets. Investors should consider this development as part of a broader strategy, recognizing that significant price appreciation may take years to materialize.