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The cryptocurrency market ends the week with an increase in capitalization above $ 950 billion Judging by the increased activity of transactions and growing trading volumes, investors are aimed at taking the bar of $ 1 trillion, which will lead to a corrective movement that can return digital currencies to the minimum mark of the year.
The scenario of growth of cryptocurrency capitalization above $ 1 trillion is able to become a reality on Monday, full of important events.
The chart below clearly shows how much Bitcoin is associated with a strong correlation with stock indices.
Stock indices will show on Monday a strong reaction to the ECB forum in Portugal and the results of the two-day G7 summit. The speeches of the governors of the Central Banks of developed countries and the heads of seven states will contain economic forecasts, plans to combat high inflation and protect against a possible recession in national economies.
In addition, the participants of the G7 summit and the ECB forum will definitely touch upon the topic of cryptocurrencies. The collapse of the Terra ecosystem, rumors about the bankruptcy of the CeFi platform Celsius and the hedge fund Three Arrows Capital (3AC), can not do without comments from regulators.
Terra investors lost more than $30 billion on the depreciation of LUNA and UST tokens. In the event of the collapse of Celsius and 3AC, investment losses will increase many times due to the interconnectedness of both startups with many pools of other crypto projects.
Analysts positively assess the future meeting of the heads of central banks, as well as possible, announced measures to regulate digital currencies. It will be about stablecoins and licensing of the CeFi industry, without touching DeFi platforms.
The likely, negative streak for stocks and digital currencies will begin on Tuesday and will increase by the end of the week.
On the second working day, the United States will release statistics on consumer confidence, the failure of which will deepen fears of a recession in the American economy. On Wednesday, German inflation will be released, preceding Friday’s inflation indicators of the Eurozone. Since November, all local cryptocurrency lows are associated with record growth in consumer prices in the US and the EU.
The decisive factor will be the publication of financial statements of retailers. Ahead of the company’s quarterly reports, the Nike, H&M, Bed Bath & Beyond and Walgreens brands will release their indicators next week. They will give investors insight into how much February’s events have impacted companies’ retail sales and earnings.
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