Bitcoin shot up by 5 per cent, dragging upward the entire cryptocurrency market, after the El Salvador decided to recognise it as legal tender.
The crypto market manages to rebound from the major price drop that occurred at the beginning of the week. All the main cryptocurrencies are indeed regaining strength: Bitcoin, Ethereum, Dogecoin and Cardano.
Crypto market rebound: El Salvador boosts Bitcoin price
The price increase of the currencies is due to the good news coming from El Salvador. The Central American country has recently announced that it will recognise BTC as a legal tender. So, people will be able to pay goods and services also with bitcoins.
In this way, El Salvador becomes the first country to adopt crypto as a currency. The aim is to help financial inclusion and attract crypto entrepreneurs to the country. Since it is adopted as a currency, Bitcoin won’t be subject to capital gains tax indeed.
The announcement had an immediate effect on the crypto market, helping in to rebound. Bitcoin’s price quickly rose by 5 per cent. Other leading cryptocurrencies grew by a couple of points. In the whole, the uptick boosted the crypto market, bringing the market cap for all cryptocurrencies back above $1.5 trillion. The recent recover is like a breath of fresh air, since it has halted the price downfall that started in mid April.
During the last difficult months, Bitcoin totally refused to go below $30,000. Some analysts have stated the feature as the point of no return. According to the, above that number Bitcoin would enter a bear market.