Bitcoin soars past $41K after plunging to as low as $37K during the weekend

Bitcoin (BTC) recovered and moved past $41,000 on Wednesday, March 16, 2022, after the crypto traded below $40,000 for the past six days. The upward trajectory came just a week after U.S. President Joe Biden signed an executive order on crypto on March 9.

Bitcoin, soared past $41,000 after falling to as low as $37,000 during the weekend, according to Coindesk. At the time of writing, BTC’s traded at $40,902.62 and is up around 5 percent for the past 24 hours based on data from CoinMarketCap.

The crypto’s recovery came just days after President Joe Biden signed an executive order that directed federal agencies to coordinate their efforts at drafting crypto regulations. The directive pointed out six key areas, which include consumer and investor protection, financial stability, illicit activity, U.S. competitiveness on a global stage, financial inclusion, and responsible innovation while outlining its approach to mitigating the risks while harnessing the benefits of digital assets and blockchain technology.

The signing of the executive order was seen as a positive development as it was seen as the first step toward regulatory clarity in the digital asset industry. In fact, Bitcoin rose by 9 percent after details of the order were prematurely leaked.

Similarly, crypto-related companies posted gains on the day of the signing with Coinbase surged by up to 10.5 percent at market close, MicroStategy gained 6.4 percent, ProShares Bitcoin Strategy ETF rose by 10 percent, Valkyrie Bitcoin Strategy ETF rose by 10.3 percent, and mining firms Riot Blockchain and Marathon Digital Holdings jumped by 11.2 percent and 13.5 percent respectively.

However, the executive order alone wasn’t able to outweigh other factors at play and Bitcoin’s upward momentum eventually fizzled out the following day. By March 10, BTC was trading below $40,000 and traded below the mark for several days until today’s rally, which briefly pushed the crypto’s price above $41,000.

BTC’s uptick in price arrived as major Asian equity markets opened Wednesday’s trading in the green. “Tokyo's Nikkei 225 opened 1.6%, Korea's KOSPI is up 0.85%, Singapore's Straits Times Index is up 1.4% and Taiwan's TAIEX is flat,” Coindesk reported.

Despite the modest rally, many expect Bitcoin and the crypto market to remain volatile. This is due to the heightened economic, geopolitical, and regulatory uncertainties, which could weigh down on the crypto market.

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