Bitcoin
gained 7.3% over the past week, ending last week near $37,700. Ethereum added
7%, while other leading altcoins in the top 10 showed mixed dynamics: from a
decline of 25% over the week (Terra) to a rise of 4.6% (Binance Coin). Terra’s
collapse is linked to the scandal surrounding the Wonderland DeFi protocol.
The
total capitalisation of the crypto market, according to CoinGecko, rose 1.7% to
$1.79 trillion for the week.
The
week didn’t start encouragingly for bitcoin. The first cryptocurrency updated
six-month lows below $33,000, but BTC sharply redeemed the short-term fall amid
an equally sharp rebound in US stock indices.
The
US stock market interrupted last week’s decline and rose for the first time
after three weeks of decline.
Apple’s
stock price jumped on Friday after a positive quarterly report and on Tim
Cook’s statements about the great potential of the metaverse.
The
rise in the stock market also contributed to the rebound in the cryptocurrency
market, which again points to the strong correlation of stock and digital
assets in recent times. This trend could continue at least until the end of
this year.
Despite
stabilisation, the situation in the crypto market remains very fragile. Bitcoin
could end up falling for the third month in a row. The decline in January is
over 17%, and the first cryptocurrency has already lost 45% since the highs in
November.
The
US Treasury Department plans to revisit the controversial FinCEN proposal for
mandatory verification of bitcoin wallet users in 2022. If adopted, the
proposal would require cryptocurrency exchanges to collect personal data from
their users.
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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