WASHINGTON (dpa-AFX) - Cryptocurrencies staged an emphatic recovery in the past 24 hours buoyed by favorable regulatory pronouncements from the U.S. that more than offset the hurt of a widely expected hawkish rate hike by the Bank of Japan. Overall crypto market capitalization touched a high of $3.64 trillion and Bitcoin touched a high of $106.8k in the past 24 hours.
President Donald Trump on Thursday signed a much-awaited executive order that aims to provide regulatory clarity for digital financial technology and secure America's position as the world's leader in the digital asset economy.
The Order establishes the Presidential Working Group on Digital Asset Markets to be chaired by the White House AI & Crypto Czar and include the Secretary of the Treasury, the Chairman of the Securities and Exchange Commission, and the heads of other relevant departments and agencies. The Group would be tasked with developing a Federal regulatory framework governing digital assets, including stablecoins, and evaluating the creation of a strategic national digital assets stockpile.
The Order prohibits agencies from undertaking any action to establish, issue, or promote central bank digital currencies or CBDCs. The Order also revoked the Digital Assets Executive Order and the Treasury Department's Framework for International Engagement on Digital Assets on the grounds that it suppressed innovation and undermined U.S. economic liberty and global leadership in digital finance. The order also hints at halting aggressive enforcement actions and regulatory overreach and at ensuring that innovation thrives, regulatory frameworks are clear, and economic liberty is protected.
Earlier in the day, Bank of Japan hiked short term interest rates to a 17-year high of 0.50 percent from 0.25 percent as widely expected. In its quarterly outlook, Bank of Japan also raised its forecasts for core inflation for financial year 2024 to 2.7 percent versus October's estimates of 2.5 percent. It also simultaneously lowered its 2024 GDP growth forecast to 0.5 percent from 0.6 percent previously.
The crypto-friendly action from the new U.S. administration aided and abetted a crypto rebound. Sentiment was also boosted by the SEC cancelling the controversial crypto accounting rule SAB 121 that required financial firms holding crypto to record them as liabilities on their balance sheets.
Overall crypto market capitalization has increased 3.8 percent overnight to $3.64 trillion. The 24-hour trading volume has also increased 39 percent to $205 billion.
Bitcoin rallied 3.2 percent overnight to trade at $105,185.85, around 4 percent below the all-time high. BTC has added 2.5 percent in the past week. The leading cryptocurrency traded between $106,820.33 and $101,989.93 in the past 24 hours.
Bitcoin Spot ETF products in the U.S. saw inflows of $189 million on Thursday versus $249 million a day earlier. iShares Bitcoin Trust (IBIT) topped with inflows of $155 million.
Ethereum rallied 5.5 percent in the past 24 hours to trade at $3,398.77 around 31 percent below the previous peak recorded in November 2021. The leading alternate coin is however grappling with weekly losses of 0.33 percent. Ether traded between $3,424.90 and $3,197.01 in the past 24 hours.
Ether Spot ETF products in the U.S. recorded outflows of $15 million on Thursday versus inflows of $71 million a day earlier.
3rd ranked XRP (XRP) added 3.6 percent overnight to trade at $3.18, around 17 percent below the all-time high touched in January 2018. The cryptocurrency is saddled with losses of 1.8 percent over the past week.
The price of 5th ranked Solana (SOL) surged 8.7 percent overnight. With weekly gains of 19.8 percent, SOL is currently trading at $265.05, around 10 percent below its record high on January 19, 2025.
6th ranked BNB (BNB) added 0.8 percent overnight at its current trading price of $687.03. BNB is currently trading 13 percent below the all-time high of $793.35 touched on December 4, 2024.
7th ranked Dogecoin (DOGE) added 3.9 percent overnight to trade at $0.3619. Having lost 11.4 percent in the past week, DOGE is trading 51 percent below the previous peak scaled in May 2021.
9th ranked Cardano (ADA) gained 4.4 percent overnight to trade at $1.00. ADA is currently trading 68 percent below the record high touched in September 2021.
10th ranked TRON (TRX) added more than 6 percent overnight to trade at $ 0.2591. TRX has added 5.3 percent in the past week. The trading price is 41 percent below the cryptocurrency's all-time high recorded on December 4, 2024.
61st ranked Lido Dao (LDO) topped overnight gains with a surge of 22.5 percent. 32ndranked Ondo (ONDO) followed with gains of 15.5 percent. 75th ranked JasmyCoin (JASMY) also added more than 14 percent in the past 24 hours.
25th ranked OFFICIAL TRUMP (TRUMP) topped overnight losses with a decline of 1.8 percent. 95th ranked ai16z (AI16Z) followed with losses of 1.6 percent.
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