The long-awaited executive order on regulatory aspects of bitcoin and cryptocurrencies in the United States was finally announced on Wednesday. This coincided with a rally in the bitcoin and cryptocurrency markets. However, according to the trader and Managing Partner of Gavotti SGP, Eduardo Gavotti, the recent rally in the bitcoin market is not related to the announcement of the executive order published by the White House.
“In my opinion, the recent positive performance of the bitcoin market goes hand in hand with the recovery of the global stock markets, which seem to have taken a breather after the strong volatility that we have had since the war broke out in Europe” Gavotti says.
The trader and economic adviser adds that the recent behavior of the price of bitcoin is similar to that of the main stock market indicesfor which he does not relate it to the executive order signed by Biden, as reported by CriptoNoticias.
Gavotti points out that there are positive aspects in the fact that a government like that of the United States propose a regulatory framework on activities related to cryptocurrencies.
The first of these aspects, and for me the most important, is that it elevates cryptocurrencies to a level of much greater consideration and seriousness within the financial system, which could lead to greater adoption, which is always a positive thing for any new technology. .
Eduardo Gavotti, trader and Managing Partner of Gavotti SGP.
However, the specialist maintains that very uncertain aspects remain, since the executive order instructs various federal agencies to begin working on proposals for what these regulations would look like.
The most important of these proposals, in Gavotti’s view, would be the eventual introduction of a central bank digital currency (CBDC) in the United States. “Regarding the ‘digital dollar’, I have been arguing that there is a risk on stablecoin issuers like Tether, in case the law prohibits transactions with other stablecoins than those approved by the government,” says Gavotti.
The graph shows that a rebound had already begun this Wednesday the 9th, both in the price of BTC (candles) and in the S&P 500 (gold) and Nasdaq (light blue) stock indices. At the time of writing, bitcoin shows a price of USD 42,453 and a rise of 10.10% in the last 24 hours. On the other hand, S&P 500 and Nasdaq show increases of 2.27% and 3.35%, respectively.
Although the specialist does not consider that the recent rally in bitcoin is directly related to the executive order, he does believe that it can have a positive long-term impact on the cryptocurrency market. to the extent that it favors adoption.