Bitcoin tops $42,000 amid expectations of Biden executive order

Ether, the coin linked to Ethereum blockchain and the second largest cyrpto in terms of market capitalisation gained 7.2% to $2,757.

On the other hand, dogecoin rose 3.3% at $0.123213 whereas Shiba Inu was down 4.6% to $0.00002434. Other leading coins Polkadot and Solana were also higher over the last 24 hours, according to data from CoinGecko.

Bitcoin has swung within a range of $33,000 to $48,000 for much of the year. The latest move higher came despite the somber tone in wider markets due to the war in Ukraine and turmoil in commodities. Edward Moya, senior market analyst at Oanda, wrote in a note on Friday that “Bitcoin’s broadening formation could see selling pressure look to test the $37,000 area.”

With Russia’s invasion nearing the two-week mark, a debate has been raging about whether cryptocurrencies are a hedge against increasing willingness among governments to seize financial assets — or a convenient sanctions-evasion tool that needs stricter policing.

Investors are also awaiting an update on a possible executive order from President Joe Biden this week, which is expected to outline the U.S. government’s strategy for cryptocurrencies.

In a since-removed statement dated March 9 posted to the US Department of the Treasury website, Treasury Secretary Janet Yellen said the approach outlined in the order “will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.”

“For years, the crypto market has been hindered by a lack of regulatory clarity in the U.S.,” said Hayden Hughes, chief executive officer of trading social-media platform Alpha Impact, in a message Wednesday. “If clear guidelines are passed, this could be a watershed moment for the industry.”

Privacy coins Monero and Zcash gained around 27% and 20% respectively in the past 24 hours, CoinGecko data showed, amid speculation that they may get payment traffic displaced by the sanctions on Russia.

“The recent surge in privacy coins is mostly driven by traders speculating on the possibility that we will see capital flight” into them, said Ben Caselin, head of research and strategy at crypto exchange AAX, in a message Wednesday.

While privacy coins allow for a higher degree of anonymity, the networks they live on are less decentralized and less secure than Bitcoin, and limited in market cap, he said. “Rather than a new trend, current uptake is likely to be limited, with more volatility ahead.”