Bitcoin dips back below $40K as traders weigh Biden’s (Cryptocurrency:BTC-USD) via Getty Images

Bitcoin (BTC-USD) is falling in early trading, Tuesday, as speculators appear to have mixed views on President Joe Biden’s cryptocurrency executive order.

Bitcoin (BTC-USD -7.7%) is dropping under $40K to sub $38.8K, erasing most of the gains made following Biden’s new policy release. Ethereum (ETH-USD -5.6%) is also back below $2.6K.

“The executive order is, more than anything, defensive,” Guy Gotslak, co-founder of digital asset investment platform My Digital Money, told CNBC Thursday. “The EO does not direct the government to take proactive steps to nurture the growth of technology,” he added. “Hence while the market reacted positively to the statement, momentum wasn’t strong enough to surpass resistance” at $42K, Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC, citing the executive order as “more positive or neutral.”

On the other hand, Biden’s “executive order on crypto is a watershed moment,” Cameron Winklevoss, the co-founder of crypto trading firm Gemini, wrote in a Tweet Wednesday. “It paves the way for thoughtful national crypto regulation that will allow builders to build onshore and ensure that the US remains a leader in crypto,” he added.

The Biden administration’s crypto policy, a potentially big step toward an efficient regulatory framework, came after the White House prepared a national security memorandum to regulate the digital asset space.

Most of the largest cryptos by market cap are trading lower, such as binance coin (BNB-USD -6.7%), ripple (XRP-USD -3.5%), terra (LUNA-USD -2.8%), cardano (ADA-USD -5.6%), solana (SOL-USD -6.6%), avalanche (AVAX-USD -7.5%), dogecoin (DOGE-USD -4.6%), shiba inu (SHIB-USD -6.2%), polygon (MATIC-USD -6.2%), wrapped bitcoin (WBTC-USD -7.7%) and litecoin (LTC-USD -6.5%).

Crypto-related stocks are also gapping down in premarket trading, including crypto exchange Coinbase Global (NASDAQ:COIN) -4.2%, crypto miner Marathon Digital (NASDAQ:MARA) -6%, Bit Digital (NASDAQ:BTBT) -5.3% crypto bank Silvergate Capital (NYSE:SI) -4.2% and crypto platform Bakkt (NYSE:BKKT) -4.1%.

On Wednesday, cryptos soared after an accidental release of Biden’s executive order.

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