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In the early hours of Wednesday, the broader crypto market staged a mini-comeback after the leaked remarks by U.S. Treasury Secretary Janet Yellen revealed a friendlier-than-expected stance with regards to U.S. President Biden's crypto order. On the back of this, BTC managed to swiftly clear the $40k psychological barrier after posting a decent 8% gain in a matter of hours. The largest crypto by market cap has since extended its upside gains and is currently trading above the $41k level as of the time of writing. In a similar vein, ETH saw a break above the $2,700 level, whilst major altcoins also flipped green. The altcoin recovery charge is very much led by top-performers LUNA, after it posted an impressive 17% gain from 24 hours ago.
Meanwhile, the low transaction fees on both the Bitcoin and Ethereum networks present a short window of opportunities to swap tokens or mint NFTs (on these platforms) at a lower cost. In fact, BTC's mean transaction fee has stayed abnormally low since July of last year after reaching an all-time high of $63 just three months prior, with some analysts attributing this to the diminishing demand for on-chain transactions as investors' interest shifted their focus to altcoins and NFTs. Now, and after staying at elevated levels for the entirety of the second half of 2021, Ethereum transaction fees have also started to plummet, and are now at the lowest levels that we have seen since August 2021.
The aforementioned leaked statement which caused a comeback in the crypto market — while already removed — remains front and center among industry players. The statement reportedly revealed a call for “a coordinated and comprehensive approach to digital asset policy”. It also shows that the U.S. Treasury will partner with other agencies to produce a report on the future of money and payment systems. International partners will reportedly be brought together to promote “robust standards and a level playing field”. BTC, which was mired in range trading for much of the year, broke out of the key psychological resistance zone at $40k.