Bitcoin Sets Up for Optimism

BTC
was down 0.2% on Monday, ending the day near $46,300. Since the start of
Tuesday, the first cryptocurrency has strengthened by 1% to $46.7K.

EU investors are buying up Bitcoin

Bitcoin
corrected down on Monday, updating three-day lows just above $45,000. By the
end of the day, BTC was able to win back almost the entire decline against the
backdrop of positive dynamics in US stock indices.

Over
the past 24 hours, Ethereum has gained 0.6%, as other leading altcoins from the
top ten showed mixed dynamics: from a decline of 2.2% (Solana) to a rise of
4.8% (Dogecoin).

According
to CoinMarketCap, the total capitalization of the crypto market increased by
0.7% over the day to $2.17 trillion. The Bitcoin Dominance Index rose 0.3% to
41%.

Cryptocurrency
index of fear and greed added another 1 point by Tuesday, to 53, remaining in
neutral territory.

According
to CoinShares, institutional investors invested $180 million in crypto funds
last week. Europeans again showed the most activity, while American investors
remained on the sidelines. Long-term crypto investors continue to accumulate
bitcoin, the IntoTheBlock report notes.

BTC as a beacon of global demand

Without
significant news in the cryptocurrency sector, bitcoin is again working as an
indicator of global demand for risky assets. Its positive dynamics on Tuesday
morning is a positive signal for stocks at the start of the day. However, it
will be possible to speak with confidence about the local victory of the bulls
only after BTCUSD fixes above the 200-day moving average, which is now passing
near 48300.

Meanwhile,
investment bank JPMorgan warned investors of an imminent slowdown in the growth
of the cryptocurrency market, as indicated by the decrease in the share of
stablecoins in the total market capitalization of cryptocurrencies.

The
metaverse market will reach $13 trillion by 2030, according to Citibank. At the
same time, the user base of the metaverses will grow to 5 billion people in the
coming years. According to an NBC News survey, 21% of Americans have already
used cryptocurrencies for various purposes.

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