Bitcoin rose to the $41,000 mark thanks to an inexplicably flattering comment from a US official.
Bitcoin (BTC) advanced early on Wednesday, boosting the entire crypto market, as US Treasury Secretary Janet Yellen’s inadvertently disclosed remarks indicated that US President Joe Biden’s long-awaited crypto directive will take a constructive approach to regulating the digital asset sector.
It is necessary to take steps to encourage innovation and manage industry risks under the crypto order. The secretary’s statement appeared in print a day early, reportedly because of a an error, and was promptly removed, but was retained on a web cache.
Bitcoin has traded at below $40,000 over the last seven trading days. On Wednesday, it rebounded to more than 8 percent and reached $41,000.
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Crypto EO Detailed Review
According to Yellen, the US Treasury will collaborate with interagency partners to develop a detailed report on the future of money and related payment systems in accordance with Biden’s EO.
Since early January, Biden’s White House team of financial experts has been working on an executive order on digital assets, which an unnamed source said will help bring “coherence to what the US government is trying to accomplish in this arena.”
Bitcoin was trading around $38,135 at this time Tuesday, prior to Yellen’s comments. However, Bitcoin quickly recovered and reached $41,500 within a matter of minutes after the statement.
BTC Total Market Cap at $795.45 Billion on the Daily Chart | Source: TradingView.com
Yellen Makes a Statement Lifting Bitcoin and Other Cryptos
It is important to note that Bitcoin has not been the only cryptocurrency to experience a rally. Evidently, Yellen’s partial disclosure favors all cryptos in the top ten global crypto rankings.
Coingecko data shows that Ethereum (ETH), which has increased more than 7% over the past 24 hours, is currently selling for approximately $2,715 each coin.
Similar to Binance Coin, (BNB), is also up 4.5% while Cardano, Terra (LUNA), Ripple(XRP), Solana/SOL, and Avalanche are up 8.5% and 18.4% respectively.
“Based on Yellen’s words, the crypto EO is a welcome development that calls for a coordinated and comprehensive approach to digital asset regulation that promotes responsible innovation,” Cameron Winklevoss of Gemini Trust wrote on Twitter.
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Mixed reactions
So far, notable industry figures have had mixed reactions. Evan Van Ness, founder of Week In Ethereum, described the speech as a “nothingburger of a statement.”
Aaron McDonald of Altered State Machine was more sombre about the announcement.
McDonald stated in a tweet that Yellen’s remarks demonstrate her want to “ensure we keep the most potent weapon in our arsenal – the USD as global settlement.”
Traders expect that the Biden administration will adopt stricter cryptocurrency laws in its effort to keep Russia out of the mountain of sanctions placed on Russia for their ongoing invasion of Ukraine.
However, Yellen’s favorable comments appear to indicate that the law will certainly benefit the new asset class.
Featured Image from Decrypt Chart from TradingView.com