The crypto market has pulled back, but hasn’t given up

The crypto market has pulled back, but hasn’t given up

Market Overview

The crypto market cap has declined by nearly 1% to $2.4T, once again approaching the 50-day moving average but still remaining above it (a bullish sign). Selling pressure is driven by renewed market fears arising from the situation in the Middle East. Technically, the market must make an early decision: either break through the uptrend line from early February or confirm the 50-day MA as support and break the downtrend. 

Bitcoin fell below $70K on Thursday morning as investors exited risky assets in traditional markets. However, the leading cryptocurrency remains close to the psychologically significant round figure and is still above the 50-day moving average, maintaining hopes of a resumption of growth at the first signs of a shift. 

News Background

Bitcoin ETFs have attracted $2.5 billion over the past month, offsetting nearly all of the outflows that had been ongoing since January, according to Bloomberg. BlackRock’s BTC ETF has ranked among the top 2% of ETFs by inflows since the beginning of the year.

The net outflow of the leading cryptocurrency from exchanges last month signalled a shift by investors towards an accumulation phase, notes analyst Darkfost. According to him, investors are buying coins and withdrawing them from platforms for self-custody.

Large investors are shunning a wide range of altcoins in favour of Bitcoin and Ethereum, while interest in the rest of the crypto market is waning, BlackRock notes. The investment firm considers most new projects to be ‘nonsense’ with no long-term value.

The Irish authorities have restored access to a wallet containing 500 confiscated bitcoins, which were previously considered inaccessible due to lost keys. The BTC wallet was successfully hacked thanks to cooperation with the European Cybercrime Centre.

The Ethereum Foundation has presented a roadmap for protecting the network against quantum computers. The plan includes four hard forks. According to the developers’ estimates, ‘cryptographically significant’ devices will not appear for at least eight or even 12 years. However, preparations for this must begin now.

By the FxPro Analyst Team