Bitcoin, Ethereum Rally as Crypto Markets Recover

The crypto market has come roaring back as Bitcoin and Ethereum both posted healthy overnight gains. 

Bitcoin, the largest cryptocurrency by market cap, breached $42,000 Wednesday morning. At time of going to press, Bitcoin's price is hovering around $42,000, up over 8% on the day, per CoinMarketCap. The second-largest cryptocurrency Ethereum enjoyed similar bullish momentum, hitting $2,800 and marking a rise of 7.7% over the past 24 hours. 

The bullish news comes amid an uncertain macro environment as all markets, including crypto, respond to the ongoing Russian invasion of Ukraine.

On Monday, Bitcoin was trading as low as $37,387 and Ethereum had dropped to $2,467. From trough to today’s peak, both assets have risen a total of 12.85% and 13.49%, respectively. 

Bitcoin is still responsible for 41.3% of the entire crypto market, with Ethereum capturing little more than 17%. 

The wider cryptocurrency market has also risen a total of 7.7% over the past 24 hours, jumping from $1.7 trillion to $1.91 trillion in total value. Besides Bitcoin and Ethereum, other notable cryptocurrencies from the market’s top ten have played their part too. 

Avalanche has risen 8% and is currently trading at just over $78, following the launch of a $290 million incentive program. Called Multiverse, the funds are expected to be used to support the development of gaming, NFTs, and DeFi projects on Avalanche.

Cardano and Solana have enjoyed modest gains too, with the former rising by more than 4% and the latter by just over 6%. Today’s biggest gainer, however, has been Terra and its native token LUNA. 

The network hosting DeFi’s second-largest ecosystem has risen by just under 20% overnight and is currently trading at around $97. 

Bitcoin, Ethereum react to leaked Yellen note

The recent trend reversal appears to be a result of a leaked press release from the U.S. Secretary of the Treasury Janet L. Yellen which outlines how the government plans to reign in the industry. 

The press release was expected to be released on Wednesday, but it was allegedly inadvertently published on Tuesday at roughly 6 pm EST. 

The contents of the now-removed note suggest that the Biden administration will be taking a much more constructive approach. 

The administration “will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses,” reads the press release. 

Yellen also highlighted the importance of addressing risks related to the illicit use of cryptocurrencies and consumer protection, both of which have been hot topics for the administration when it comes to reigning in the industry. These objectives will be pursued via “interagency” collaboration, according to Yellen. 

Though the details indicate a guarded step forward from regulators, the rise of Bitcoin and Ethereum suggests the market was expecting something much worse.