Bitcoin, Ethereum Rally as Crypto Markets Recover

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

Bitcoin, the largest cryptocurrency by market capitalization, surged above $42,000 on Wednesday morning. At the time of going to press, The price of bitcoin hovers around $42,000, up more than 8% on the day, per CoinMarketCap. The second-largest cryptocurrency Ethereum saw similar bullish momentum, hitting $2,800 and marking a 7.7% rise in the past 24 hours.

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

On Monday, Bitcoin was trading as low as $37,387 and Ethereum fell to $2,467. From today’s low to high, the two assets are up a total of 12.85% and 13.49%, respectively.

Bitcoin is still responsible for 41.3% of the entire crypto market, with Ethereum capturing just over 17%.

The broader cryptocurrency market also grew by 7.7% in total over the past 24 hours, from $1.7 trillion to $1.91 trillion in total value. Besides Bitcoin and Ethereum, other notable cryptocurrencies in the top ten of the market also played their part.

avalanche rose 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 game development, NFTand Challenge projects on Avalanche.

gimbal and Solana also recorded modest gains, with the former increasing by more than 4% and the latter by just over 6%. The biggest winner today, however, was Terra and its native token LUNA.

The network hosting the second-largest DeFi ecosystem grew by just under 20% overnight and is currently trading at around $97.

Bitcoin and Ethereum Respond to Leaked Yellen Note

The recent trend reversal appears to be a result of leaked press release by US Treasury Secretary Janet L. Yellen, who describes how the government plans to rule the industry.

The press release was supposed to be released on Wednesday, but it was inadvertently released Tuesday around 6 p.m. EST.

The content of the now-deleted memo suggests the Biden administration will take a much more constructive approach.

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

Yellen also stressed the importance of addressing the risks associated with the illicit use of cryptocurrencies and consumer protection, both of which have been hot topics for the administration when it comes to ruling in the industry. These goals will be pursued through “inter-agency” collaboration, according to Yellen.

Although the details indicate a cautious step forward by regulators, the rise of Bitcoin and Ethereum suggests that the market was expecting something much worse.