Bitcoin Collapses Below $40,000, Almost Erasing All Of Biden’s cryptocurrency executive order gains.

On Thursday, as some of the initial euphorias around US President Joe Biden’s executive order on digital assets faded, bitcoin and other cryptocurrencies tumbled.

Last week, Bitcoin fell more than 6% to $39,324.04, according to Coin Metrics.

On Thursday, bitcoin rose to a value of $42,577 after beginning the day at around $38,744.

The price of Bitcoin was also down, by about 2%. In addition, other cryptocurrencies including ether and XRP were also declining.

Bitcoin Collapses Below $40,000

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The rise came as the administration’s optimism about Biden’s executive order on cryptocurrencies grew. The directive focuses on six key areas: consumer protection, financial stability, illicit activity, U.S. national security and economic competitiveness.

The U.S. government’s decision was praised by some high-profile cryptocurrency industry figures. Cameron Winklevoss, one of the Gemini exchange’s co-founders, called it a “watershed moment.”

However, some people were doubtful.

The executive order, more than anything, is defensive in nature. The primary aims of the EO are to safeguard the US’s international financial position and ensure that US regulations (both federal and global) are not circumvented through cryptocurrency.

“We can do it, but we’re going to need help from the government. Make sure crypto investors and users are protected legally, and that the cryptocurrency industry is regulated in general,” said Guy Gotslak, co-founder of cryptocurrency investment platform My Digital Money.

“These aren’t terrible; we all want the same thing. We want to safeguard investors, particularly the little ones. The EO does not, however, instruct the government to take proactive measures to encourage technological development.”

Bitcoin Collapses Below $40,000

According to Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, the executive order was “either more favorable or neutral in general.”

“Thus, while the statement was well-received by investors, momentum wasn’t strong enough to break above $42,000 resistance,” he added.

“What we see is that Bitcoin is range-bound, unable to make a significant move on either side, and Ukraine uncertainty remains.” Ayyar concluded.

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