Cryptocurrency prices sharply rebounded on Thursday after El Salvador become the world’s first country to pass a bill, approving Bitcoin as a legal tender on June 9.
The world’s most popular cryptocurrency is now trading over 13 per cent higher compared to its price 24 hours ago. At 9:50 am, it was trading over $37,000 — almost $5,000 higher than its price on Wednesday.
Smaller rival Ethereum (Ether) has also recovered sharply, up over 6 per cent from its price 24 hours ago. Prices of both Bitcoin and Ether are likely to improve further as the day progresses.
There has also been a broader recovery in cryptocurrencies with impressive gains in other virtual coins like Ripple, Cardano, Dogecoin, Stellar, Polkadot, Litecoin and more.
The decision taken by El Salvador has seemed to have had a positive impact on the entire cryptocurrency market.
The announcement was made by El Salvador President Nayib Bukele through Twitter. The president also announced that people who invest in Bitcoin in El Salvador will get the country’s citizenship.
“The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out,” the law reads.
Under the law, bitcoin must be accepted by firms when offered as payment for goods and services. Tax contributions can also be paid in cryptocurrency.
“If you go to a McDonald’s or whatever, they cannot say we’re not going to take your bitcoin, they have to take it by law because it’s a legal tender,” Bukele.
Bitcoin’s use as a legal tender will begin in El Salvador in 90 days.
Here are the latest prices and trends of popular cryptocurrencies:
|
Cryptocurrency |
Price (US Dollar) |
24-hour change |
Market cap (Billion) |
Volume (24 Hours) |
|
Bitcoin |
36,812.55 |
12.19% |
$689.54 |
$55.52 billion |
|
Ethereum (Ether) |
2,549.89 |
4.94% |
$296.37 |
$41.96 billion |
|
Dogecoin |
0.337049 |
5.43% |
$43.74 |
$3.62 billion |
|
Litecoin |
170.07 |
9.89% |
$11.54 |
$1.48 million |
|
XRP (Ripple) |
0.888455 |
5.43% |
$88.84 |
$4.44 billion |
|
Cardano |
1.59 |
5.18% |
$51.04 |
$4.01 million |
Despite the positive development, the cryptocurrency market may continue to witness high volatility as a result of China’s crackdown and US hesitancy.
China’s public security ministry said authorities have arrested over 1,100 suspects accused of using cryptocurrencies to launder illegal proceeds from telephone and Internet scams in a recent crackdown. The arrests came as authorities in China step up their crackdown on crypto trading.
Meanwhile, US Senator Elizabeth Warren has called on the country’s policymakers to directly tackle issues presented by the growing use of cryptocurrency, while saying a Federal Reserve-backed digital currency shows “great promise.”
Warren said that cryptocurrency’s promise of boosting everyday Americans has failed to materialise, and instead the government must act to address a host of problems.
“Cryptocurrency has created opportunities to scam investors, assist criminals, and worsen the climate crisis,” she said at a congressional hearing.
“The threats posted by crypto show that Congress and federal regulators can’t continue to hide out, hoping that crypto will go away. It won’t. It’s time to confront these issues head-on,” Warren added.
(DISCLAIMER: The cryptocurrency prices have been updated as of 10:20 am and will change as the day progresses. The list is intended to give a rough idea about popular cryptocurrency trends and will be updated on a daily basis.)