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Bitcoin and other cryptocurrencies fell on Thursday as some of the initial excitement surrounding US President Joe Biden’s executive order on digital assets faded.
Bitcoin was down more than 6% at $39,086 as of 3:38 a.m. ET on Thursday, according to data from CoinDesk.
On Wednesday, bitcoin surged as high as $42,577 after initiating day trading at around $38,744.
Other cryptocurrencies like ether and XRP also traded lower.
Wednesday’s spike comes as optimism surrounding Biden’s executive order on crypto mounts. Orders focus on six key areas: consumer protection, financial stability, illegal activity, US competitiveness in the industry, financial inclusion, and responsible innovation.
Several prominent players in the crypto industry have praised the US government’s move. Cameron Winklevoss, co-founder of crypto exchange Gemini, calls it a “watershed moment”.
But not everyone is convinced.
“Executive orders, more than anything, are defensive. The primary goals of the EO are to protect the financial position of the United States of America globally, ensuring U.S. regulation (both federal and global). ) is not breached using cryptocurrencies, said crypto investors and users Guy Gotslak, co-founder of crypto investment platform My Digital Money.
“This is not a bad thing; we all want the same thing. We want to protect investors, especially small investors. But the EO does not direct the government to take proactive steps. to foster the development of technology.”
Vijay Ayyar, vice president of international and corporate development at crypto exchange Luno, said the executive order is “generally more positive or neutral.”
“Therefore, while the market reacted positively to the statement, the momentum was not strong enough to break through the resistance” at $42,000, he said.
“What we can see is that Bitcoin is broadly bound, unable to make a strong move for either side, coupled with ongoing uncertainty about Ukraine,” Ayyar added.
