Bitcoin edged up 0.6% to $43.6K. Ethereum added 1.6%, while the other top 10 altcoins showed mixed momentum: a 3% decline (Terra) to a 6.2% growth (Solana).
BTC loses its correlation with stocks?
Bitcoin briefly fell below $43,000 on Thursday but, by the end of the day, had made up most of the decline, remaining close to Thursday’s closing levels amid a rebound in US stock indices.
According to Bloomberg, a further drop in stock indices could hit bitcoin hard. Near-term risks are rising as the US Federal Reserve steps up its fight against inflation and rising interest rates and intends to embark on aggressive balance sheet reductions.
In contrast, Michael Novogratz, CEO of Galaxy Digital, believes that bitcoin is gradually losing its correlation with stock indices. He believes lower inflation and a stabilizing economy will drive bitcoin higher.
The total crypto market cap, according to CoinMarketCap, rose 1.2% to $2.02 trillion overnight. The Bitcoin Dominance Index fell 0.4% to 40.9%. The cryptocurrency fear and greed index rose 3 points to 37 on Friday but did not come out of the “fear” state.
Regulation of meta-universe and cryptography in Russia
FxPro’s analyst team pointed out that Meta is exploring the possibility of creating a cryptocurrency for the meta universe to increase revenue due to the decline in popularity of their cash cow apps, Facebook and Instagram. .
Russian Prime Minister Mikhail Mishustin said 10 million Russians hold more than 10 trillion rubles ($128 billion) in crypto wallets, or just under $1,000 per Russian resident. He also called for regulation of cryptocurrencies, although he rejected their recognition as a means of payment.
The Economist Intelligence Unit believes that the war will accelerate Ukraine’s adoption of cryptocurrency. From examples in Africa, the Middle East and Latin America, we have already seen that the use of cryptocurrencies increases dramatically when national economies and local currencies weaken.
This article was written by Alex Kuptsikevich, Senior Market Analyst at FxPro.