Bitcoin price has seen a significant upward movement on Wednesday following president Joe Biden signing an executive order. BTC’s price surged by 10% and touched the weekly high of $42,500. This move had come at Bitcoin price when the analysts and experts were expecting a further decline in price owning to extreme uncertainties caused in the market due to Russia Ukraine military conflict.
The United States government has been working to the potential of launching its own central bank-backed digital dollar; however, the recent move came after the launch of Digital Yuan e-CNY by China.
This directive calls for U.S. government agencies to examine the advantages and potential risks of establishing CBDC (Central Bank Digital Currency) and other aspects of cryptocurrencies. It calls on officials at the Federal Reserve to explore whether the central bank could jump in and develop its cryptocurrency.
Crypto Market is still reeling under fear and uncertainty
A significant rally in bitcoin price has pulled the entire crypto market from the bearish wave. However, the entire market is still going through the FUD situation. The Russian invasion of Ukraine has not yet reached any conclusion, and more negative news is still looming.
Crypto Fear and Greed Index has slipped to extreme fear from the neutral zone last week. It shows prevalent uncertainties in the market; nevertheless, this news has given a significant and much-anticipated push to bitcoin price.
Impact of Biden’s Executive Order on Crypto
In the executive order, the president. Biden has directed the U.S. Treasury Department and other Federal agencies to investigate the effects the cryptocurrency industry has on stability in financial markets as well as national security.
Biden’s directive will require agencies like the Treasury Department, the Commerce Department, and other central agencies to create documents regarding “the future of money” and cryptocurrency’s role in the future.
The Biden administration views the rapid rise of crypto as an occasion to look at the benefits and risks of digital currencies.
The Executive order is mainly focused on key areas mentioned below:
- Financial Stability
- Consumer Protection
- Mitigation of illicit financing
- The U.S. Competitiveness,
- Responsible Innovation
- Financial Inclusion
- Expedite Research on CBDC
The crypto community is hopeful and welcomed this move from Biden’s administration. It was a long due action from the U.S. government in the step of exploration and development of a unified regulatory framework for digital assets.
What is Biden’s Executive Order on Crypto Regulation?
An executive order by the U.S. president calls Federal agencies to execute certain tasks. This presidential order is aimed to address the risk involved in cryptocurrencies and their potential benefits.
Will Bitcoin touch $50K this week?
The crypto market sentiment is bearish despite the sudden jump in price. If BTC settles above $45K this week, $50K could be the next target in the coming days.
Aurora has worked with a leading crypto news site as a Journalist. Aurora is working as Senior Journalist with Coinfea. She loves to travel in her free time.