Bitcoin feels the need for correction before further growth

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Market picture

Bit­coin rose
5.3% last week to close at $23.8K. On Sun­day, the first cryp­tocur­ren­cy was one
step away from $24K, updat­ing its high since August. Ethereum gained 0.9% to
$1640. Top-10 lead­ing alt­coins have gained between 2.7% (Doge­coin) and 18.8%
(Poly­gon).

Total
cryp­tocur­ren­cy mar­ket cap­i­tal­i­sa­tion rose 4.4% to $1.08 tril­lion over the week,
accord­ing to Coin­Mar­ket­Cap. The cryp­tocur­ren­cy fear and greed index reached the
greed zone for the first time since late March last year.

Bit­coin is
grad­u­al­ly approach­ing its key mov­ing aver­ages. The 200-week is just above
$24.7K, and the 50-week is now at $24.5K. A break below these lev­els would be a
strong sell sig­nal. A rebound above them could restore con­fi­dence in the crypto
mar­ket. But be pre­pared for a pro­longed con­sol­i­da­tion or cor­rec­tion before a
deci­sive move higher. 

Poly­gon
(MATIC) broke into the top 10 by cap­i­tal­i­sa­tion, tak­ing over Solana. Over the
past 30 days, the price of MATIC has increased by 52%. Ethereum’s second-tier
scal­ing net­work came sec­ond by dai­ly users, behind the BNB chain.

Anoth­er
recal­cu­la­tion showed a 4.7% increase in the min­ing com­plex­i­ty of the first
cryp­tocur­ren­cy. The index renewed its all-time high at 39.35T.

News Background

Accord­ing to
Matrix­port, US insti­tu­tion­al investors have start­ed active­ly buy­ing bitcoin,
account­ing for up to 85% of all pur­chas­es. Alt­coins are still large­ly lagging
but could soon over­take the top two cryptocurrencies. 

Accord­ing to
Reuters, the US Secu­ri­ties and Exchange Com­mis­sion (SEC) has begun inspecting
Wall Street finan­cial advi­sors for cryp­tocur­ren­cy cus­tody services.

One of the
largest rat­ing agen­cies, Moody’s, is devel­op­ing a scor­ing sys­tem to analyse the
risks of sta­ble­coins. The plat­form will be based on assess­ing the qual­i­ty of
col­lat­er­al reports and will sup­port up to 20 assets.

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

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