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The executive order on digital assets signed by US President Joe Biden on Thursday has created a bullish sentiment across the crypto market. On Wednesday, Bitcoin gained from around $38K to $42K. The executive director of global content at CoinDesk, Emily Parker, has agreed that the crypto market might have turned bullish following the signing of this order.
Executive order triggers market gains
In an interview with CNBC, Parker stated that there seems to be a bullish sentiment following this executive order. The order did mention anything specific about endorsing the crypto sector, but the recognition shows that the US government does not want the crypto sector to stay in regulatory limbo forever.
One of the things about the order is that it acknowledged that the crypto sector was here to stay. The order mentioned that around 40 million Americans had invested in cryptocurrencies, showing that it was not looking to ban the sector.
The order also called for federal agencies to develop regulations for the cryptocurrency sector. Various federal agencies have been conflicted about the cryptocurrency sector, and if they work in sync, it could lure more investors to the space.
Bitcoin institutional adoption is growing
2021 saw an influx of institutional investors flocking to buy Bitcoin. Some of the leading financial institutions on Wall Street, including JPMorgan and Goldman Sachs, have already dipped their toes on crypto.
Wall Street is deemed a significant player in the financial markets, and according to Parker, the players in this space can make the prices go up. However, the influx of institutional players into Bitcoin has not been replicated in the retail market, given that the buzz surrounding Bitcoin seems to have dwindled this year.
The prices of Bitcoin and other cryptocurrencies have plunged significantly in 2022. Bitcoin reached an all-time high of $69,000 in November last year, and it has since failed to show a strong recovery. At the time, the uptrend was attributed to rising inflation and the approval of a Bitcoin futures ETF.
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