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Bitcoin Sets Up for Optimism

BTC was down 0.2% on Monday, ending the day near $46,300. Since the start of Tuesday, the first cryptocurrency has strengthened by 1% to $46.7K. Over the past 24 hours, Ethereum has gained 0.6%, as other leading altcoins from the top ten showed mixed dynamics: from a decline of 2.2% (Solana) to a rise of 4.8% (Dogecoin).

According to CoinMarketCap, the total capitalization of the crypto market increased by 0.7% over the day to $2.17 trillion. The Bitcoin Dominance Index rose 0.3% to 41%.

Cryptocurrency index of fear and greed added another 1 point by Tuesday, to 53, remaining in neutral territory.

Bitcoin corrected down on Monday, updating three-day lows just above $45,000. By the end of the day, BTC was able to win back almost the entire decline against the backdrop of positive dynamics in US stock indices.

According to CoinShares, institutional investors invested $180 million in crypto funds last week. Europeans again showed the most activity, while American investors remained on the sidelines.

Long-term investors in cryptocurrencies continue to accumulate bitcoin, the IntoTheBlock report notes. Without significant news in the cryptocurrency sector, bitcoin is again working as an indicator of global demand for risky assets. Its positive dynamics on Tuesday morning is a positive signal for stocks at the start of the day. However, it will be possible to speak with confidence about the local victory of the bulls only after BTCUSD fixes above the 200-day moving average, which is now passing near 48300.

Meanwhile, investment bank JPMorgan warned investors of an imminent slowdown in the growth of the cryptocurrency market, as indicated by the decrease in the share of stablecoins in the total market capitalization of cryptocurrencies.

The metaverse market will reach $13 trillion by 2030, according to Citibank. At the same time, the user base of the metaverses will grow to 5 billion people in the coming years. According to an NBC News survey, 21% of Americans have already used cryptocurrencies for various purposes.

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