Bitcoin and Ethereum both saw significant overnight increases, bringing the crypto market back to life.
Bitcoin, the most valuable cryptocurrency by market capitalization, broke beyond the $42,000 barrier early Wednesday. Bitcoin’s price is hovering at $42,000 at the time of going to press, up over 8% on the day, according to CoinMarketCap. Ethereum, the second-largest cryptocurrency, rose 7.7% in the last 24 hours to $2,800.
The encouraging news comes in the midst of an unpredictable macro environment, as all markets, including crypto, react to Russia’s escalating invasion of Ukraine. Bitcoin was trading at $37,387 on Monday, while Ethereum was trading at $2,467. Both assets have climbed a total of 12.85 percent and 13.49 percent from their lows to their current highs.
Bitcoin still controls 41.3 percent of the cryptocurrency market, with Ethereum accounting for just over 17 percent. The total value of the cryptocurrency market has increased by 7.7% in the last 24 hours, rising from $1.7 trillion to $1.91 trillion. Aside from Bitcoin and Ethereum, other significant cryptocurrencies in the top 10 have also contributed.
Following the announcement of a $290 million incentive scheme, Avalanche has gained 8% and is now trading at slightly over $78. Called Multiverse, the funds are planned to be utilized to finance the development of games, NFTs, and DeFi initiatives on Avalanche.
Cardano and Solana have also seen moderate gains, with the former up more than 4% and the latter up little more than 6%. Terra and its native token LUNA, on the other hand, have seen the most gains today.
The network that hosts DeFi’s second-largest ecosystem has surged by over 20% overnight and is now trading at around $97.
Bitcoin, Ethereum react to leaked Yellen note
The current trend reversal appears to be the result of a leaked press statement from US Treasury Secretary Janet L. Yellen, which describes how the government intends to regulate the industry.
The press release was supposed to go out on Wednesday, but it was accidentally issued on Tuesday at about 6 p.m. EST. The contents of the now-deleted note indicate that the Biden administration will take a far more positive attitude.
According to the news release, the administration “will support responsible innovation that could result in considerable advantages for the nation, consumers, and companies.”
Yellen also stressed the necessity of tackling dangers associated with the criminal use of cryptocurrencies as well as consumer protection, both of which have been hot subjects for the administration when it comes to regulating the market. According to Yellen, these goals will be pursued through “interagency” coordination. The growth of Bitcoin and Ethereum implies the market was expecting something a lot worse, despite the details indicating a cautious step forward from regulators.