The Bitcoin price is rocketing 8% today. What’s going on?


The Bitcoin (CRYTPO: BTC) price is up 8.3% since this time yesterday.

The world’s original crypto is currently trading for US$41,975 (AU$57,425). That brings its market cap back up to some US$790 billion, according to data from CoinMarketCap.

Mind you, though, that’s still well below the US$1.2 trillion market valuation it had back in November.

So, why did the Bitcoin price leap overnight?

Why did the Bitcoin price just leap 8%?

It looks like there are 2 factors that really offered some healthy tailwinds for the Bitcoin price.

First, Bitcoin has tended to track alongside risk assets over the past months. And share markets across Europe and North America leapt higher yesterday (overnight Aussie time).

In the United States, the tech-heavy Nasdaq closed up 3.6%. In Europe, Germany’s DAX led the charge, closing up an eye-popping 7.9%.

The Bitcoin price also looks to have gotten a healthy push after US President Joe Biden signed an executive order relating to crypto regulation. That order will impose greater oversight on crypto markets.

It will also see US government agencies, including the Commerce Department and Treasury Department, look into the potential of creating a digital dollar via the Federal Reserve.

Commenting on the executive order, Hany Rashwan, CEO of crypto exchange traded product provider 21Shares, said (quoted by Reuters):

At 21Shares, we’ve always believed that the best way to introduce and expose investors to crypto is through a safe and regulated approach. Today’s action will help the US establish itself as a leader in crypto for years to come.

Have other cryptos benefited too?

It’s not just the Bitcoin price that’s logged some hefty gains in the past 24 hours.

Ethereum (CRYPTO: ETH), the second largest crypto by market valuation is up 5.2% over that same time.

In fact, running the slide rule over the top 100 cryptos, only 7 are in the red since this time yesterday.

Source: Read More

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