Bitcoin is behaving like gold

The first cryptocurrency returned to growth on Tuesday morning, adding 3.3% and rising to 43,500. Technically, BTCUSD held above the 50-day moving average and received support from buyers after another touch of this level. At the same time, however, this average is directed downwards, emphasizing the general downward trend.

Cryptocurrencies seem to be once again trying on the role of a safe-haven asset, becoming a little more like gold and a little less like stocks.

Although US stock indices were under pressure on Monday, they decided to stop the sharp decline at the end of last week. However, the high-tech Nasdaq ended the day unchanged. European stock indicators showed a noticeable drop under the influence of tensions around Ukraine. On the same background, gold shot up 3% to highs since June last year. It should be understood that in the event of a massive sale of shares, only short-term government bonds will be the protective asset of last resort.

Institutions invested $75 million in crypto funds last week, according to CoinShares. Over the past four weeks, net inflows to crypto funds amounted to $209 million.
The head of Uber said that the company would definitely start accepting cryptocurrencies in the future. A British crypto investor has announced the creation of a city for crypto investors in the Pacific and expects thousands of supporters from around the world to join soon.

The Ministry of Finance of the Russian Federation proposed to limit the investments of unqualified Russian investors in cryptocurrencies to 50 thousand rubles. The agency estimates tax revenues to the budget from the legalization of the cryptocurrency market at 10-15 billion rubles, and the main amount of payments will fall on the miners.

Overall, Bitcoin was down 0.2% on Monday, ending the day at around $42,200. Ethereum added 0.1%, while other leading altcoins from the top ten showed mixed dynamics: from a decrease of 1.6% (XRP) to a rise of 2 .2% (Terra).

The total capitalization of the crypto market, according to CoinGecko, grew by 0.5% per day, to $1.97 trillion. The BTC dominance index did not change during the day, remaining at the level of 40.7%. The Fear and Greed Index is up 2 points to 46 and is in a state of fear. 

The FxPro Analyst Team