The crypto stocks rally while Bitcoin drops below $40,000 but later managed to make some gains after the Biden administration signed its plans for the industry so let’s read furhter in our latest Bitcoin news.
The old saying “Buy the rumor, sell the news” was in full effect in the past 36 hours, and a few assets were shaken as hard as BTC. The biggest cryptocurrency by market cap is now trading at $39,220 which was the same price at the start of the week but the current price represents a 7% drop in the past day. When a press release from Janet Yellen was leaked, the US Secretary of Treasury outlined a new approach to regulating the industry that promoted responsible innovation as the leading crypto increased by 8%.
It appeared that the market experienced a much bigger expectation that didn’t unfold so the current regulators ranged from the SEC’s Chairman Gary Gensler to Yellen often slammed crypto for the role in illicit finance and for shrinking the consumer protection laws. The now-deleted press release cast a different light on the industry:
“This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.”
After the sentiments were enshrined in the new executive order from Biden, Bitcoin shed almost all of its gains. Next to Bitcoin’s volatility, crypto stocks rally and enjoy a smooth ride on the heels of Biden’s executive order. Companies like Robinhood, Coinbase, and Paypal, all jumped over the past day. Coinbase’s COIN is up to y 11% since the market close a day ago and PayPal is also up by more than 5% while Robinhood’s HOOD increased by the same amount. Companies that have a large BTC holding on the balance sheet, like Tesla and Microstrategy are riding high as well, being up by 6.43%.
Bitcoin lost most of yesterday’s gains as the market saw $100B erased from it in the process. The crypto market lost $100 billion in the past 24 hours as the BTC price retraced from its yesterday pump which was induced by the release of President Joe Biden’s order on digital assets. Bitcoin’s price increased from $39,000 to $42,000 in a huge surge which was caused by the release of the long-awaited executive order on digital assets which has to be signed by the US President.
