Crypto markets were painted green today as Bitcoin traversed beyond $42,000 in a couple of hours, bumping the market capitalisation by $130 billion overnight.
Bitcoin has chopped between $45,000 and $35,000 for nearly two months, with each thrust upwards being rejected just as quickly as every dump was bought in the last 55 days. Altcoins followed Bitcoin and recovered some losses too, with XMR, LTC, and ETH experiencing a 31% and 8% overnight gain respectively.
The move came as a leaked document on the upcoming crypto executive order made the rounds, and also coincided with reports that veteran Wall Street traders are increasing exposure in the ‘relatively new’ market.
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Bitcoin Price Soars to $42K
Reports of a leaked press release on the much anticipated Executive Order by the US Treasury Department’s website seemingly calmed fears of a potentially heavy-handed approach to crypto by the US government.
One of the excerpts from the leaked report read:
President Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy. This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.
Bitcoin soared during Europe’s early trading hours, climbing nearly 10% to $42,000, where it currently exchanges hands.
nothing else to soar during Europe’s early hours trading session and surged above $40,000 to reach $42.1K, where it’s currently trading. This also enabled the total cryptocurrency market cap to add about $130 billion overnight. At the time of this writing, BTC’s price charts an increase of 8.2% in the past 24 hours alone.
Hedge Funds increase Crypto Exposure
The move came just as a Wall Street Journal article underlined that veteran traders were increasing their crypto holdings across the board.
In fact, some of the biggest names in the hedge-fund world including Alan Howard, co-founder of Brevan Howard Asset Management LLP, and Paul Tudor Jones, the billionaire who runs Tudor Investment Corp., are reportedly expanding their crypto trading portfolios.
Hedge funds have reportedly noticed that the cryptoverse is large and liquid enough in order for their own investors to get involved. The relatively small and new market has ample inefficiencies which tends to act as a magnet for veteran players.
The embrace of crypto by more veteran hedge-fund traders—which are often wagering on the direction of a token’s price, much as they do with stocks—is the latest sign of Wall Street’s clear warming to the digital currency space.
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