Bitcoin, the largest cryptocurrency by market capitalization, broke through $42,000 in the early hours of Wednesday. At the time of writing, the price of bitcoin is around $42,100, representing an increase of over 8 percent on a daily basis. The second-largest cryptocurrency, ethereum, reached $2,750 and recorded a 7 percent increase in the last 24 hours.
Bullish news comes amid an uncertain macro environment as all markets, including cryptocurrencies, react to the ongoing Russian invasion of Ukraine.
On Monday, bitcoin was trading around $37,300, while ethereum fell to $2,467. From those levels to today, both cryptocurrencies have increased by a total of 12.85 and 13.49 percent, respectively.
Bitcoin continues to account for 41.3 percent of the total crypto market, while ethereum is responsible for just over 17 percent.
The broader cryptocurrency market has also risen by a total of 7 percent in the last 24 hours, jumping from $1.7 trillion to $1.93 trillion in total value. Besides bitcoin and ethereum, other notable cryptocurrencies from the top ten in the market have also played a role.
Avalanche has risen by 8 percent and is currently trading at just over $78, following the launch of a $290 million incentive program. The funds, named Multiverse, are expected to support the development of gaming, NFTs, and DeFi projects on Avalanche.
Cardano and solana have also made modest gains, with the former rising by over 4 percent and the latter by just over 6 percent. However, the biggest winner today is terra and its token luna.
The blockchain hosting the second-largest DeFi ecosystem has risen by just under 20 percent overnight and is currently trading around $97.
The recent trend reversal appears to be the result of a leaked press release from U.S. Treasury Secretary Janet Yellen describing how the government plans to position itself regarding regulation.
The press release was supposed to be published on Wednesday but was reportedly accidentally released on Tuesday around midnight.
The content of the now-removed note suggests that the Biden administration will take a much more constructive approach.
The administration will ‘support responsible innovations that could result in significant benefits for the nation, consumers, and businesses’, the statement reads.
Yellen also emphasized the importance of addressing risks associated with the illegal use of cryptocurrencies and protecting consumers, both of which have been hot topics for the administration. These goals will be achieved through ‘interagency’ cooperation, Yellen believes.
Although the details indicate a shift from regulators, the rise of bitcoin and ethereum suggests that the market expected something much worse.
