The value of the cryptocurrency market has grown by almost 3% over the past day to 2.07 trillion. Exceeding the psychologically important round mark led to a demand for coins outside the top ten.
Apart from this, bitcoin enjoyed demand due to the pull into risky assets in traditional financial markets and the weakening of the dollar. Bitcoin has not kept up with the entire crypto market since the beginning of the week, which has reduced its share to 40%. Recently, it rose when altcoins fell with acceleration relative to the first cryptocurrency.
However, it is too early to talk about the beginning of a new rally in the crypt.
The crypto market remains 30% below its peaks in early November, and capitalization growth is very cautious and uneven.
Interestingly, the cryptocurrency fear and greed index lost 1 point to 21, despite a very significant increase in market capitalization.
Yesterday we saw an impulsive growth, but it does not develop at the beginning of the day on Thursday. Confirmation of the bulls’ strength may be consolidation above $45 thousand. Up to this point, it is only reasonable to talk about a rebound within the framework of the formed descending channel.
If the dollar returns to growth in the near future, this will return pressure on the stock markets. Under these conditions, the cryptocurrency market risks turning back to decline, stopping the rebound and remaining within the framework of a protracted downward channel.
One should be afraid of such a smooth decline, as it exhausts optimists. We saw a similar descent in 2018, when in the second half of the year the decline became monotonously smooth, and a wide range of crypto enthusiasts switched to standby mode until mid-2020.
