Russia may legalize crypto to circumvent sanctions

After reaching the lows for the month, the first cryptocurrency received support from buyers, as was the case at the end of January. The growth dynamics were relatively modest, which indicates the caution of buyers. It is likely that these are long-term holders rather than short-term speculators, as markets generally remain wary.

Interestingly, buying during the decline has become a key outline of the American session. After more than a 3% fall, US stock indices not only bounced back but also managed to show growth at the end of the day. This stimulated bitcoin to strengthen.

A short-term surge of bullish sentiment could end quickly if risky assets resume their decline again. If the situation in Ukraine escalates even more, bitcoin may fall below $30,000 as investors leave for defensive assets.

According to The New York Times, Russia is legalizing cryptocurrency to circumvent US sanctions. Otherwise, the country will not survive the growing sanctions pressure from Western countries.

Bitcoin rose over the past day by 10.7% to $38,500, reducing the decline in 7 days to 5%. Ethereum jumped 12% but is still 10% lower than it was exactly a week ago. Other leading altcoins are moving almost in unison, adding about 10% in most cases.

The total capitalization of the crypto market, according to CoinMarketCap, increased by 9.6% per day to $1.72 trillion. The bitcoin dominance index rose 0.3 points to 42.6%, due to a smaller strengthening of altcoins.

The index of fear and greed of the crypto market has risen from 23 to 27, into the territory of fear. 

The FxPro Analyst Team