Crypto market rallies on reports of a ‘positive’ Biden crypto executive order

• News of the release of a now-deleted Treasury response to Biden’s crypto executive order has sent bullish waves in the market
• Bitcoin has gained more than 8.25%, racing past $42,000, while Ethereum has retested $2,750

Reports of the highly-anticipated crypto executive order from the White House being bullish or neutral in the worst case have spurred a market rally on Wednesday morning.

Treasury’s response hints Biden’s crypto executive is likely not bearish

Late yesterday, US Secretary of Treasury Janet Yellen published a response to the Biden crypto order even before the latter was released. The incident struck as unintentional since the response shared was dated March 08 (today) yet went up live a day earlier.

In the statement, Yellen ‘accidentally gave an inkling’ that Biden’s administration is leaning towards an innovation-oriented and well-structured approach to managing the digital assets space. She also penned several actions that the Treasury Department would take to regulate virtual assets and manage their risks.

“President Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy.  This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses,” a section of the letter read.

The response has since been deleted, but there is an archive version here.

Industry experts have deciphered the Yellen response, noting that based on her remarks, the crypto executive order is largely positive.

“The leaked Treasury statement has been welcomed by the crypto market as it seems to focus on development of the industry, rather than on imposing unrealistic regulations,” Bitbank’s Yuya Hasegawa remarked in response to CNBC.

This has rejuvenated crypto investors and traders, setting off an uptrend in the market.

Bitcoin leading the comeback, clears $42,000

The cryptocurrency market is prevalently green, with the majority of tokens recording decent gains. The flagship crypto, Bitcoin, has posted a price upsurge of 8.26% in the last 24 hours and is trading above $42,000.

Ethereum price has shot up by 6.56% in the same period, crossing the $2,750 mark. Other altcoins have traced a similar path led by Terra (LUNA), which is closing in on $100 after jumping up 18.57% over the past 24 hours.

The price of Near Protocol’s NEAR token has seen approximately 12.59% of price gains during the same window. The token is now trading at $11.15 as per CoinMarketCap data. Avalanche’s AVAX is up by 8.15% alongside a pack of other alts, including DOT (6.53%), SOL (5.39%), and ADA (4.98%).

The surging prices have, however, led to almost $200 million being liquidated in the last 24 hours as per Coinglass liquidation data. Conceivably, the majority of the liquidated positions are short.