Bitcoin targets $45,000 after Yellen let slip details on U.S. regulation

Bitcoin erased some of the recent fall during the weekend, which led the digital currency par excellence to one-week lows in the vicinity of $37,000, after some turmoil in the 'crypto' market due to a mistake made by the US Treasury Secretary, Janet Yellen. Apparently, her official statement to the executive order prepared by US President Joe Biden to regulate the crypto-industry, that had not yet been published, was made public and the market is reacting with purchases because it is much more positive than expected. The rises for both Bitcoin and Ethereum are 8% in the last 24 hours.

"The comments revealed that Biden's impending cryptocurrency order, which caused a lot of fear and stress among crypto traders, would take a constructive approach to regulating the digital asset industry," stated Ipek Ozkardeskaya, an analyst at Swissquote.

Yellen's statement transcended a day ahead of schedule, apparently by mistake and was quickly deleted, but was picked up in a web archive, according to 'CoinTelegraph'. It shares early thoughts on the details of President Biden's soon-to-be-released executive order. The order will call for "a coordinated and comprehensive approach to digital asset policy." It also calls for efforts to support innovation while addressing risk in the industry.

Yellen's statement indicates that the executive order could "result in substantial benefits for the nation, consumers and businesses." "It will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and the broader economy."

Yellen also outlines in her statement the next step the Treasury Department will take to learn how to understand digital assets and how to regulate them within the parameters of the executive order.

This stance made by the United States "would be a big step for digital assets, as regulation is one of the main risks to their valuation," commented Ozkardeskaya, who noted that Bitcoin surpassed the $41,000 mark "on the news." The expert expects the rises to continue as "we could see further rises towards $45,000 in the coming hours."

Biden's executive order, which is imminent, is expected to propose "broad oversight of the cryptocurrency market - including an executive order - to address the growing threat of ransomware and other cybercrime."

Forecasts suggest that he will also instruct the Treasury, the Justice Department and other government agencies to outline a possible scenario for how the nation could adopt a central bank digital currency. The US has been toying with this idea for some time, but has yet to take a decisive step, while other countries, such as China, are far ahead of the curve.

Regardless of whether the "strategy" is cooperative for the cryptocurrency market or not, "this clarity from the government level is positive in the long run: hopefully, institutions will have a deeper understanding of their position," Sotiriou asserted. "I believe that the introduction of regulatory clarity in the US, even if it hinders innovation at first, will ignite the next wave of money entering the cryptocurrency markets," the expert added, before concluding, "This is how a price of $100,000 to $500,000 for Bitcoin is achievable in the next 5 years."