The day brought some good news for the cryptocurrency industry. Bitcoin and ethereum, the two most important cryptocurrency assets, both rose in value by 9%. The largest cryptocurrency asset is up 23.2% from its one-year low of $32,950.72 touched on January 24.

Global markets soar

Global cryptocurrency market capitalization has soared from $1.70 trillion to $1.87 trillion in the past 24 hours. Trading volume climbed to $90.36 billion from $68.72 billion on Feb. 4, 2022.

In the last 24 hours, decentralized financial DeFi accounted for 13.44% of total cryptocurrency trading volume, reaching $12.21 billion. Stablecoins accounted for 81.35% of the cryptocurrency market's 24-hour trading volume of $73.92 billion.

BTC's market dominance rose slightly to 41.65%. At the time of the news, BTC was trading at $41,388.68 on Feb. 5. On an INR basis, BTC was trading at Rs 32,33,214, up 9 percent. Ether rose 9.5% to Rs 2,34,199.9.

Caldano is also up 6% to Rs 88.73 and Avalanche is up 11% to Rs 6,096.60. Polkadot also gained 7% to Rs. 1,617.09 and Litecoin rose 6.7% to Rs. 9,320 in the last 24 hours.

India's ambiguity about cryptocurrencies was clarified when Finance Minister TV Somanathan said Thursday that cryptocurrencies can never become legal tender.

The 2022-23 budget also clarifies the taxation of virtual currencies and proposes a 30% tax on income from cryptocurrency transactions above the 1TDS threshold.