Bitcoin Rally Gets Support From ‘Watershed’ Executive Order, Rising Stock Market

cryptonews.com:

Traders bid the price of bitcoin (BTC) up strongly in the market today even before a new Executive Order by US President Joe Biden laid out plans for what was seen as a positive approach to digital assets. Also, an improved sentiment sent US stock futures higher, helping BTC too.

The gains at the time of writing (14:20 UTC) sent the price of bitcoin up more than 8% for the past 24 hours, reaching a high for the day of just over USD 42,500 before a slight retracement began. The price is still down around 5% in a week.

The rise in the price of bitcoin happened even before the Biden administration announced their highly anticipated Executive Order on digital assets, which observers generally described as supportive of innovation.

According to Jeremy Allaire, co-founder and CEO of crypto payments company Circle, the order was “a watershed moment for crypto” in the US, while FTX CEO Sam Bankman-Fried called it “a constructive [Executive Order] to discuss customer protection and economic competitiveness in digital assets.”

Supporting the rising bitcoin price, US S&P 500 stock index futures also pointed to a strong opening on Wall Street. At the same time, gold fell back from its high of USD 2,070 yesterday, trading just under the key USD 2,000 mark at the time of writing (14:20 UTC).

The gains for the stock market today followed heavy losses earlier this week, with the war in Ukraine, sanctions, and sharply rising energy prices weighing on investors’ sentiment.

The gains today also come ahead of US inflation data for February set to be released tomorrow. Analysts expect the consumer price index (CPI) to come in at 7.9% year-over-year, up from 7.5% the month before, which already marked the highest inflation rate in 40 years.

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