Cryptocurrency News

Crypto Market Rallies As Russia Proposes Safe Corridors

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After a week of market consolidation, leading cryptocurrencies rallied on Wednesday to continue the relative positive market recovery for the digital assets industry.

The equity market was also not left out of the recent rally, which came when Russia opened a humanitarian corridor to some badly hit cities in Ukraine as the war rages on. But some Asian markets were not part of the latest rally.

Following the leaked press release of the executive order signed by President Joe Biden, Bitcoin’s price has surged to more than $42,000. The executive order is focused on establishing a coordinated and comprehensive framework for digital currency policy. 

The approach is to support innovations in the crypto and blockchain industries to benefit the country’s consumers and other businesses. The executive order was a long-awaited framework that the cryptocurrency and blockchain industry expected.

Crypto and Equity Markets Record Huge Gains

The past 24 hours have seen a crypto market capitalization of 4.94%. At the time of writing, Bitcoin is currently trading at $42,000, which is almost an 8% increase in value. Ethereum, XRP, and Terra have a combined increase of 6%, 4%, and 20%, respectively.

Traders are still waiting for the executive order details, which the Treasury Department released just a bit of information about. But the brief statement on the Treasury’s website was enough to drive positive sentiments in the crypto market.

What Does The Executive Order Entail?

The complete details of the order have not been made available to the public domain yet. Still, as per the leaked statement from the U.S Treasury Department, the order indicates an acceptance of the crypto industry by the Federal government as the order is aimed at developing the industry rather than imposing some strict regulations as was previously feared.

Treasury Secretary Janet Yellen, who spoke about the order, praised President Joe Biden’s move to sign the executive order by stating that the order would bring a positive balance to Blockchain innovation and protect consumers’ needs.

According to Yellen, the order will also address the risks of illicit financial transactions by safeguarding consumers and investors and preventing threats to the financial markets and the United States economy as a whole.

Some industry experts believe that Bitcoin will continue to be a reliable medium for the store of value despite the dominance of gold over it in the conflict region of Eastern Europe.

When the prices of digital currencies are shooting high, the same cannot be said for the Asian equity market. The ongoing war between Russia and Ukraine results in mixed market performance and benchmark indices and futures, which points to a positive performance amid the ongoing uncertainties.

Following reports that Russia is opening a humanitarian corridor to allow civilian evacuation, the Indian and European markets rose significantly.

However, the move by Russia to open a humanitarian corridor is met with widespread criticism because it is alleged that the routes mostly lead back to Russia or its ally, Belarus.

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