Yesterday morning India Time, I was writing a post on Leofinance and Bitcoin was already near $41k. Yesterday's action was quite bullish. There was definitely strong buying interest in Bitcoin. Here is the 1-hour chart that shows what I was seeing more clearly.
The news of President Joe Biden came out much later so I do not think that the executive order was necessarily the reason for this bullish move. I think a number of factors have come into play here. Possibly the news about the executive order was leaked and people stepped in to buy. Then the Ukrainian President said that Ukraine is no longer interested in being part of Nato and that could have calmed markets. On the inflation front as well, there was some more positive news as the US is looking to buy Venezuelan Oil and UAE said that it would increase supply. I think the fundamentals that I mentioned in my post from two days ago are also playing a part in this jump.
The executive order signed by the US President is a big positive for the crypto community. The executive order is a sign that the world's biggest economy is favorable towards cryptocurrencies and sees it as an important innovation. Some of the details of the executive order can be found in this Coindesk article.
The other positive for me is that the US is looking to regulate crypto through a holistic approach. The details are also interesting as the US President has directed government agencies to completely understand the space before preparing any drafts. Not only will this take time, but it also means that the industry will not be bogged down by unnecessary requirements and can focus fully on innovation. A proper channel of communication between the regulators and the crypto entities will be established. Moreover, this marks the end of haphazard action from different regulatory agencies.
This process will also help pave the way for uniform crypto regulations across the globe. When the world's most powerful economy is seeing crypto as an innovation, the rest of the world has to follow. A wealth-creating innovation that can provide a technological edge will be seen as an opportunity by many.
Hopefully, this move by the US will take away focus from useless ideas such as - "Crypto is used for illegal activities", "The industry is full of scams", and similar negative statements.
The executive order directs the Treasury Department to study the future of money. The US understands that the Dollar may not remain a reserve currency forever. Possibly they are looking at what could be the options and Bitcoin is on their radar. The US government is also positive on stablecoins and wants to understand the benefits of these tokens. The crypto ecosystem could not have asked for something more positive.
The US itself wants to drive a global framework for regulating cryptocurrencies. I think this will force other countries to adopt cryptocurrencies and help get rid of skepticism around crypto. 2022 may be the year when Crypto finally goes mainstream.