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Highlights:
- The global crypto market soared over 5% on Wednesday morning.
- Bitcoin (BTC) and Ethereum (ETH) prices jumped more than 8% and 6%, respectively.
- Treasury Department published a statement that allayed fears of the investors before it was taken down.
The global crypto market recently witnessed a slump as investors shifted their focus on safer investments due to several uncertainties in the market. However, the market appears to be recovering, as indicated by the recent surge in prices of virtual currencies.
On March 9, the global crypto market cap jumped 5.81% to US$1.85 trillion, while its volume for the last 24 hours was up 8.57% to US$97.31 billion at 6:06 am ET. The unexpected surge was led mainly by the gains in Bitcoin's (BTC) and Ethereum (ETH) prices.
At the time of drafting, the price of Bitcoin (BTC) surged 8.43% to US$42,273.78 while Ethereum's (ETH) price rose 6.48% to US$2,759.34, on track to mark their best performing day this month so far.
Also Read: Why is Stellar (XLM) crypto rising?
Source: *Data provided by CoinMarketCap.com
Why is the market rising?
The price surge could be due to a prematurely published statement of the US Treasury Department.
Reports suggest that Janet Yellen, Treasury Secretary, said that the still-pending President Joe Biden's executive order on the digital assets focuses on a "coordinated and comprehensive approach" towards the policies of the cryptos, and it would aid in "responsible innovation".
This has reportedly shrugged off concerns over a sudden tightening of US regulations around digital currencies.
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Bottom line
President Joe Biden is reportedly expected to sign a much-awaited executive order this week that would ask the Justice Department, Treasury, and other regulatory agencies to study the legal and economic consequences of bringing a US central bank digital currency.
The White House released a statement on March 9. It said that the rise in popularity of virtual assets had created an opportunity to reinforce American leadership in the financial systems worldwide.
The statement mentioned that despite the rise of digital assets and technological advancement, it is important to think about consumer protection, national security, financial stability, and climate risk.
Last year, White House officials had said they were exploring oversights on the crypto market to deal with the increasing ransomware attacks and other related cyber crimes.
Also Read: Why is FTX Token (FTT) rising?
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