The global cryptocurrency market has surpassed $2 trillion in market capitalization, led by Bitcoin, amid a surge in institutional demand. After more than doubling in price in 2021, Bitcoin's price is now floating around $57,000 per digital coin, contributing more than $1 trillion.

Ethereum, Binance Coin, Polkadot, Tether, and Cardano are the other major cryptocurrencies, with a total market capitalization of $422 billion. Tesla, the electric car maker, has revealed that it will begin accepting Bitcoin as a form of payment. Tesla has already made a $1.5 billion Bitcoin investment.

Tesla CEO Elon Musk announced late last month that people in the US can now purchase a Tesla with Bitcoins and that other countries will be able to do so later this year. According to Shivam Thakral, CEO of BuyUcoin, digital assets have outperformed all other asset classes this year, with Bitcoin and Ethereum both by 100% and 190%.

“The growing global support for the crypto industry comes as no surprise, given that organizations and institutions all over the world have recognized the value of digital assets and want to be first to market. “No other asset class in the world can have such a good inflation hedge,” Thakral said in a statement released on Wednesday.

Industry stakeholders last month said that a positive step at this stage could release a slew of opportunities for India after Union Finance Minister Nirmala Sitharaman said that all cryptocurrency windows would not be locked.

IAMAI (Internet and Mobile Association of India), which represents India's leading cryptocurrency players, has urged the Indian government not to prohibit cryptocurrency, arguing that the ecosystem requires a robust regulatory framework.

The government has scheduled the launch, consideration, and passage of the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the current session of Parliament. According to reports, India is planning to introduce its digital currency, the Central Bank Digital Currency (CBDC). This action would be in accordance with the plans of several central banks to launch their digital currencies.