The digital asset executive order signed by the US president Joe Biden had a positive effect on the crypto market. Crypto companies saw their stock prices jump after this announcement. The new order requires federal agencies to regulate digital assets. A dollar CBDC is also planned.
Coinbase platform saw its stock price surge 10.5% when the market closed. Shares of MicroStrategy achieved a gain of 6.4%, according to the data of TradingView.
ETFs related to blockchain received a boost with traders showing renewed interest in crypto. The ETF of ProShares BTC Strategy gained 10% while ETF of Valkyrie BTC Strategy closed at 10.3%.
The cryptocurrency mining firms were the biggest gainers. The shares of Riot Blockchain Inc. went up 11.2%. Marathon Digital saw its shares go up by 13.5%. Jonathan Peterson, a Jefferies analyst issued a buy rating for this company. He advised clients that this order shows the US government wants to recognize, engage with and support the crypto industry.
A 10% swing may be volatile for the traditional market but it is common for the crypto industry. Even with last day’s increase, the shares of Coinbase remain down by 48% from its price listed last year in April. Riot Blockchain remains in a worse position with its share down by 76% from its recent high seen in February 2021.
Bitcoin jumped 9% when details of the executive order were leaked. The price settled at its current gain of 5%. Except for the positive price action, this executive order has been taken positively by the crypto firms. It is not as hard as the industry feared it. President Biden referred to digital assets as an opportunity to strengthen the US leadership in the tech landscape and international financial systems.