The US President Joe Biden signing the executive order for digital assets has hit the crypto market positively. It sent bitcoin soaring, crossing the crucial $40,000 mark. But at the time of writing this article, BTC has slipped 1.51% in the last 24-hours and is trading at $40,800, as per CoinMarketCap data.
In the afternoon of March 9, bitcoin surged above $40,000 and touched $42,000 briefly. This saw the total crypto market cap to add about $130 billion overnight. While the world’s most popular cryptocurrency gained over 10%, Ethereum rose by 8.64%. The ripple effect was felt across the crypto market sending the altcoins in green. THORchain’s native token RUNE spiked nearly 30% – making it the largest gainer of the day.
Analysts attribute the green shade of the crypto market to US Treasury Secretary Janet Yellen’s milder statement, which wasn’t expected. She called for a coordinated and comprehensive approach to the digital asset policy. Yellen highlighted that it will support responsible innovation that could bring about substantial benefits for the country, businesses, and consumers.
Meanwhile, industry watchers have described the US’s move to regulate crypto as fair. Analysts believe that if BTC price remains below $43,000 on March 11, only $190 million worth of call options will be available. This happens as there is no value in the right to buy Bitcoin at $44,000 when it’s trading below the level. It’s advisable for bitcoin bulls to hold $42,000 for a $140 million profit on March 11.