Bitcoin is subdued as it chooses its future trend

Bitcoin fell 0.7% on Thursday, ending the day around $36,800. Ethereum lost 1.8%, while other leading altcoins in the top 10 showed mixed dynamics from a 1.5% decline (Solana and Polkadot) to a 4.3% rise (Terra).

Total crypto market capitalisation, according to CoinGecko, added 0.2% to $1.79 trillion overnight. Bitcoin’s dominance index remained unchanged at 39.2%.

Most cryptocurrencies were under pressure from declines in US tech stocks on Thursday.

A weak report from Meta (Facebook) was published the day before. The company’s shares lost more than 26% on the day, with the high-tech Nasdaq down almost 4%. The correlation between bitcoin and the Nasdaq stock index has recently reached a new high.

The day before, the first cryptocurrency was hit by a shutdown of mining farms in Texas, caused by bad weather and a snowstorm. The state leads bitcoin mining in the US, accounting for about half of all BTC hash rates.

Bitcoin volatility has fallen to 15-month lows in recent days. With the comparative performance of traditional financial markets, bitcoin has managed to add around 2.9% since the start of the day on Friday, reaching 38,000 and again testing the upper limit of the downward channel. However, the first cryptocurrency will need to break the key $40,000 level to confirm bullish sentiment. Otherwise, the pressure on BTC will continue and may even intensify.

The developers of the 14th cryptocurrency, Shiba Inu, have partnered with fast-food restaurant Wellu’s of Naples, Italy. The restaurant will use SHIB as a means of payment and has also fully rebranded its outlet in token style.

The FxPro Analyst Team