Has the crypto market first felt the risk appetite?

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Bitcoin rose 1.1% on Monday, and on Tuesday morning, it “shot” another 5.5%, adding 7.5% over the past 24 hours. This growth momentum brought the price of the first cryptocurrency back above $20K, in stark contrast to the dynamics of falling markets and a strengthening dollar.

Ethereum added almost as much – 7% – rising to $1,385. Against this backdrop, total crypto market capitalization jumped 5.5% to $970 billion, with top altcoins adding between 2.3% (XRP) and 8.1% (Solana).

According to CoinShares, investments in cryptocurrencies rose for the second consecutive week last week. Net inflows were $8 mln, Bitcoin investments increased $3 mln, and Ethereum investments grew $7 mln. Investments in funds that allow shorts on bitcoin fell by $5 million, the first decline in 8 weeks.

While the Dow Jones index closed at its lowest since November 2020, the Nasdaq100 turned higher after nearing the June lows, and cryptocurrencies showed strong growth. The superior performance of the riskiest assets is more typical of periods of great monetary stimulus. Therefore, the most important question is whether we are now seeing the first signs of a market reversal or a trap for naive bulls.

News background

Bitcoin will continue to trade in a range of $17K to $25K, Glassnode expects. Intense monetary policy pressure from the US Federal Reserve and an unfavorable macroeconomic climate offset any significant positive developments in the crypto industry.

Dan Morehead, CEO of crypto hedge fund Pantera Capital, believes that billions of people will use blockchain in the coming years, increasing the value of cryptocurrencies.

The SEC has demonstrated that it intends to “damage or destroy the crypto industry in the United States,” said LBRY, a decentralized content publishing platform.

Tech giant Apple has allowed the sale of collectible tokens (NFTs) in apps on its devices, but the commission will be 30%, sparking outrage in the crypto community.

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