Bitcoin and Ethereum rally as crypto markets suddenly start recovering after shocking events in Ukraine. Bitcoin is inches away of $42,000 and Ethereum eyed the $2,800 mark.
The largest cryptocurrency by market cap, breached $42,000 Wednesday morning. Bitcoin’s price is hovering around $42,000, up over 8% on the day.
The second-largest cryptocurrency Ethereum has gained similar bullish momentum with a rise of 7.7% over the past 24 hours, hitting $2,800.
What’s happening to crypto markets
Just two days ago Bitcoin was trading as low as $37,383 while Ethereum was sold for just $2,467.
Sceptics were eager to predict even further decline amid an uncertain macro environment as all markets, including crypto. Which was quite an obvious explanation due to to the ongoing Russian invasion of Ukraine.
The wider cryptocurrency market has also risen a total of 7.7% since yesterday, jumping from $1.7 trillion to $1.91 trillion in total value.
For example Avalanche has risen 8% and is currently trading at just over $78.
Cardano and Solana are going up too, with the former rising by more than 4% and the latter by over 6%.
Bitcoin is still responsible for 41.3% of the entire crypto market, with Ethereum capturing little more than 17%.
Why do Bitcoin and Ethereum rally
Many analysts say that recovering trend is a result of a leaked press release from the U.S. Secretary of the Treasury Janet L. Yellen.
The contents of the press release appeared online via Twitter just to be shortly removed. But what once appeared online, stays there forever.
So the press release which is supposed to be officially released later this week, outlines how the US government plans to reign in the industry. It actually showы that the Biden administration will be taking a much more constructive approach to cryptocurrencies than ever before. We’ll know more about it as soon as the official document gets published.