Crypto Market Seems to Be on Pause

On Tuesday,
 
 Bitcoin 
showed a growing momentum at the beginning of the day and reached five-week highs above $45,000. After a short-term rise above this level, a corrective decline began in the middle of the day. The benchmark cryptocurrency was losing more than $2,000 despite the rise in stock indices. There was a sharp rebound towards the end of the day and closed the day almost unchanged as a result.

Recovery in institutional demand for stocks late in the day on Tuesday helped Bitcoin stay above the 50-day moving average as well. Continued buying on the decline to this level will keep the technical picture bullish as upside momentum develops to $49-50K.

A sharp dip lower today or tomorrow will raise the issue of a false break and bring the sellers back into play, heading for $37-38K.It became known that at the end of last week, the Canadian exchange fund Purpose Bitcoin ETF bought 1.75 thousand BTC in two days, which could lead to a sharp increase in prices. In addition, Valkyrie Investments has received approval from the SEC to launch an exchange-traded fund (ETF) based on the shares of companies that receive at least 50% of their profits through mining.

At the same time, the US authorities confiscated bitcoins stolen from the Bitfinex crypto exchange in 2016 for $3.6 billion and detained those involved in the hack. The Russian Federation government approved the concept of the Ministry of Finance for the regulation of cryptocurrencies: a joint bill should be ready by February 18.

Overall, Bitcoin gained 0.3% on Tuesday, ending the day around $44,200.
 
 Ethereum 
was down 1.3%, while the other leading altcoins in the top ten were mixed from a 5.7% decline (Binance Coin) to an increase of 5.4% (XRP).

The total capitalization of the crypto market decreased by 1.2% over the day to $2.09 trillion. The Bitcoin dominance index increased by 0.8% over the day, to 40%.

This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.

This news is republished from another source. You can check the original article here

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