Why Cryptocurrency Stocks Jumped on Wednesday

Shares of cryptocurrency stocks climbed, as President Biden introduced an executive order to introduce a digital dollar for the U.S.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 9, 2022 5:30 pm EST

Shares of Galaxy Digital Holdings (TSX: GLXY) and Voyager Digital (TSX: VOYG) both jumped 16% and 12%, respectively, as the price of cryptocurrency stocks rose on Wednesday with a new bill from the White House.

crypto blockchain — Image source: Getty Images

What happened?

President Joe Biden of the United States introduced a new executive order for cryptocurrency regulation on Wednesday. Under the new order, agencies are asked to officially recognize and regulated digital assets. This, of course, sent cryptocurrency stocks rising.

Furthermore, the U.S. is now tasked with rolling out a new “digital dollar.” This could be huge for digital asset companies like Galaxy stock and Voyager stock — especially as cryptocurrencies continue to expand around the world.

So what?

The expanding cryptocurrency market has proven a good catalyst for movement for Galaxy stock, Voyager stock, and others. The price of digital assets fell recently, especially as many were unclear with how cryptocurrency stocks could be used by Russia in the Ukraine crisis.

However, a new bill passed this week legalized cryptocurrencies in the Ukraine to now include Bitcoin. This, along with the new executive order, shows governments the world over now don’t believe cryptocurrency is going anywhere. And it’s time to start getting ahead instead of lagging behind.

Now what?

Galaxy stock and Voyager stock are both great places to put some investment into cryptocurrency stocks. That’s not just because of the recent share movement either. Galaxy provides investors with a way to have their hands in everything from buying and selling cryptocurrency stocks to investing in blockchain companies as well.

Voyager stock meanwhile also allows users to buy and sell cryptocurrency, and even holds its own token. So, you can have the benefit of seeing shares rise as Voyager’s token increases in value with the world adopting digital assets more and more.

It looks like the panic surrounding cryptocurrency stocks may be subsiding, and these companies may see another strong path to growth because of it. Shares of Galaxy stock are up 12% as of writing, and Voyager stock is up 6.5%. Galaxy has a target price of $42 as of writing, with Voyager at $21. That’s a potential upside of 155% and 152% respectively.