The crypto market is recovering, but fears Friday

Market Overview

The crypto market capitalisation grew by 1.5% in 24 hours to $3.76 trillion. This is a return to the highs seen at the start of the week. A reversal below this level will be further confirmation of the formation of a sequence of declining local peaks. The last two Fridays have been bearish, so there is a risk that a reflex will form with increased selling before the weekend.

Bitcoin is trading near $111K, close to Thursday's intraday highs and Monday's downward reversal area. From a technical analysis perspective, BTCUSD remains trapped between the 200-day moving average below (around $108.5K) and the 50-day moving average above (just above $114K). A sustained breakout from this range could signal further movement in the direction of the breakout.

Ethereum is up 2.7% since the start of the day on Friday, again approaching $4,000. Over the past two weeks, the area around $3,700 has proven to be an important support level. Whether it will continue to withstand further pressure from sellers depends on global market sentiment and the outcome of BTC's breakout from the range.

Speculative activity in the market is declining, and recent cryptocurrency buyers are experiencing ‘financial stress,’ which is a sign of a cooling market, Glassnode notes. However, historically, such periods have often led to price stabilisation.

Open interest in Bitcoin options has reached record highs, driven by increased demand for puts. BRN warns of increased volatility and the risks of a continued correction in the first cryptocurrency.

The days of self-storage of cryptocurrencies are coming to an end, as large players increasingly prefer ETFs due to tax benefits and improvements in institutional infrastructure, according to Uphold.

Since January, the volume of transactions with stablecoins has reached $46 trillion, 106% more than in the same period last year. A16z Crypto considers this factor to be the main indicator of the maturity of the crypto industry.

US President Donald Trump has pardoned former Binance CEO Changpeng Zhao. According to White House press secretary Caroline Levitt, ‘Zhao was prosecuted by the Biden administration as part of their war on cryptocurrencies.’

The FxPro Analyst Team