Market picture
Bitcoin has
been correcting its previous rally, falling back to $29K early Tuesday. From
this level, it has been on a buying spree and has now risen to $29.6K and begun
correcting lower, falling below the $30,000 level amid negative equity indices
and a rising US dollar.
Similarly,
total crypto market capitalisation is now 0.8% lower than 24 hours ago but 1.2%
higher than today’s low. Further positive momentum during the day cannot be
ruled out. Still, doubts remain whether the market will consolidate above 30k
for Bitcoin, $2100 for Ether, and $1.28 trillion capitalisations for the entire
crypto.
According to
CoinShares, investments in crypto funds doubled last week to $114 million, the
fourth consecutive week of growth. Investments in Bitcoin rose by $104 million,
while Ethereum saw just $0.3 million. Among altcoins, Solana saw the largest
outflow ($2.1 million).
News background
Ark
Investment’s Katie Wood said that Bitcoin and Ethereum became defensive assets
on par with gold during the recent US banking crisis. She said this suggests a
much greater acceptance of BTC and ETH and, therefore, a rosier outlook for
them.
Ethereum’s rise
in recent days is a sign that altcoin season has arrived, said former BitMEX
exchange CEO Arthur Hayes. Solana, Cardano and Dogecoin have also seen
significant gains over the past week.
The Digital
Currency Monetary Authority (DCMA) of the International Monetary Fund (IMF)
announced the launch of the Unicoin Universal Currency Unit (UMU), which will
be a legal tender for cross-border payments.
According to
the Wall Street Journal, the US Securities and Exchange Commission (SEC) has
notified cryptocurrency exchange Bittrex of a possible forced termination for
failing to register with the agency.
The Kingdom
of Bhutan has been diverting some of its reserves to buy cryptocurrency. Forbes
writes that Bhutan’s sovereign wealth fund was a customer of the bankrupt
BlockFi and Celsius. This is the first public investment in cryptocurrencies by
such entities.
This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.
