Crypto enthusiasts worldwide received positive news in the late hours of yesterday, March 14, as an attempt to ban cryptocurrency mining in Europe was avoided.
The EU parliament voted against the Proof-of-work (a mechanism used by most cryptocurrencies such as Bitcoin and Ethereum) consensus banning. The European Parliament Committee (ECON committee) voted against the de-facto POW-ban: 32 against 24 in favour, which resulted in the proof-of-work mechanism ban being dropped by the EU.
Many people who oppose blockchain tech view this consensus as “bad” for the environment and unsustainable.
This favourable development comes barely seven days after US President Joe Biden announced to regulate cryptocurrencies positively. He issued a long-awaited executive order on digital assets that somehow elicited a positive response in the cryptocurrency community.
The recent events drop the severity level that most crypto enthusiasts fear the most. Banning cryptos is a red flag, where every cryptocurrency holder would sell all tokens in panic. This brings optimism to crypto markets and facilitates the path to upcoming crypto projects in Europe and all over the world.
Immediate effect on the market
The market has remained relatively stable. Although there are setbacks in value regarding different currencies, there has been no significant depreciation in the values. The total market cap added a 1.08% increase by rallying to $1.72 trillion immediately the EU news came out, and it is at $1.71 trillion at press time.
Bitcoin value grew significantly after the news from the EU came. The result was an increase of 1.72% in the first 2 hours.
Instead of price fluctuations caused by the brief rally, a regular increase in its stability was witnessed. The rally towards Bitcoin might take it back to the highs it witnessed before the Ukraine-Russia conflict escalated. The current price for Bitcoin is in the $38,405.21 range.
Ethereum also follows Bitcoin’s trail. It was in a bearish mood before the latest market rally changed its direction. Bitcoin mainly influences the new gains. The new addition has slightly changed Ethereum’s price, currently in the $2,522.55 range.
Polkadot has continued to gain value after the market’s stability. Also, Polkadot is considered one of the favourite currencies for 2022 as it is expected to show exceptional gains. The data for the last 7 days shows that it has gained 1.93%, while the market price has enhanced to $17.12 as new gains added to its value.
The global crypto market has gained value after the new changes have brought it an additional value. The new change has led to the rise of the global market cap to $1.71T.
The EU vote mainly influenced the increase, which added to Bitcoin and Ethereum confidence. The result was a resumed rate of investments in these two coins in the last 24 hours. The upcoming 24 hours might be more bullish as there are chances that the customer trust will play its role.
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