Bitcoin increased to nearly $45,000 and major altcoins rose as well after the world’s 11th-largest economy announced it would regulate instead of ban cryptocurrencies.
First Mover Asia: Cryptos Turn Green on Red-Letter Russia News
Bitcoin increased to nearly $45,000 and major altcoins rose as well after the world’s 11th-largest economy announced it would regulate instead of ban cryptocurrencies.
Good morning. Here’s what’s happening:
The market moves: Bitcoin steadied above $44,000, and the broader crypto market ended in higher.
Technician’s take: BTC buyers have defended intraday support levels, although the upside appears limited.
Catch the latest episodes of CoinDesk TV for insightful interviews with crypto industry leaders and analysts.
Prices
Bitcoin (BTC): $44,475 +0.6%
Ether (ETH): $3,241 +3.4%
Top Gainers
| Asset | Ticker | Returns | Sector |
|---|---|---|---|
| Ethereum Classic | ETC | +8.5% | Smart Contract Platform |
| XRP | XRP | +6.3% | Currency |
| Polygon | MATIC | +5.2% | Smart Contract Platform |
Top Losers“There are no losers in CoinDesk 20 today.”
Markets
S&P 500: 4,587 +1.4%
DJ
IA: 35,768 +0.8%
Nasdaq: 14,490 +2%
Gold: $1,833 +1.3%
Market moves
Bitcoin (BTC) traded steadily above $44,000, following news that the Russian government decided to regulate cryptocurrencies instead of banning them.
At the time of publication, the oldest cryptocurrency is changing hands above $44,475, up less than a percentage point over the past 24 hours, according to CoinDesk data. Meanwhile, ether, the second-biggest cryptocurrency by market capitalization, was trading at above $3,241, a 3.4% increase over the same time period.
One analyst said bitcoin’s gains came after the Russian government released a document on its official website late Tuesday setting principles for crypto regulation.
“What makes this decision all the more important is that the central bank also is on board,” Edward Moya, senior market analyst at OANDA the Americas, wrote in his newsletter. “Russia appears poised to recognize cryptocurrencies as a form of currency. Anytime a major [b]itcoin country embraces cryptos, that is great news for the crypto verse.”
As CoinDesk reported, the Russian government’s plan received support from its central bank, which had earlier called for a ban on crypto mining and trading. The development also came not long after India took a step toward crypto legalization with a tax on digital asset transfers.
Following bitcoin, most cryptocurrencies tracked by CoinDesk also ended in the green on Wednesday.
Moya added that as bitcoin’s price has steadied, many retail traders have started feeling more comfortable investing in alternative cryptocurrencies (altcoins).
Moya said the market will need “a major catalyst” or fresh new capital to send the No. 1 cryptocurrency by market capitalization above $50,000.
Data compiled by CoinDesk shows that bitcoin’s trading volume across centralized exchanges on Wednesday was down from a day ago.
Technician’s take
Bitcoin Recovering Between $40K Support and $46K Resistance
Bitcoin (BTC) is recovering from a slight pullback on Wednesday as buyers maintain intraday support levels. The cryptocurrency was trading around $44,500 at press time and could face resistance at $46,800.
BTC is up 3% over the past 24 hours and, on average, spot trading volume is starting to rise, albeit still below January highs, according to CoinDesk data.
For now, technical indicators are improving and do not signal extreme overbought conditions. That could keep buyers active into the Asian trading day so long as immediate support at $42,000 holds.
The downward-sloping 50-day moving average, currently at $42,689, is gradually turning upward, which could indicate a bullish shift. Still, upside appears limited given negative momentum on longer-term charts.
Important events
8 a.m. HKT/SGT (12 a.m. UTC): Australia consumer inflation expectations (Feb.)
China M2 money supply (Jan. YoY)
China new loans (Jan.)
5 p.m. HKT/SGT (9 a.m. UTC): European Commission releases its economic growth forecasts
9:30 p.m. HKT/SGT (1:30 UTC): U.S. consumer price index (Jan. MoM/YoY)
CoinDesk TV
In case you missed it, here is the most recent episode of “First Mover” on CoinDesk TV:
“First Mover” hosts spoke with CoinDesk Managing Editor for Global Policy and Regulation Nikhilesh De for his insights into the arrest of two New Yorkers who are charged with conspiring to launder $4.5 billion in bitcoin stolen from Bitfinex. California pro-bitcoin congressional candidate Aarika Rhodes, a Democrat, discussed the role of cryptocurrency in her campaign. Kene Ezeji-Okoye, co-founder and president of Millicent, shared his firm’s plan for CBDC research in the U.K. Plus, TheoTrade co-founder Don Kaufman offered market insights.
Headlines
Said and heard
“They see all the flow that everyone else is getting and want to start making some money from this.” (BlackRock to Offer Crypto Trading Services/CoinDesk) … “The past 10 days have been extremely eventful in the crypto world, as three dramatic events test the core values of the community – and, perhaps, highlight their limits.” (CoinDesk columnist David Z. Morris) … “My topic today is, instead, more meta (not to be confused with Mark Zuckerberg’s Meta). Here’s the question: When do events tell us that we need a fundamental rethink of economic concepts?” (The New York Times columnist Paul Krugman) … “After seizing the Bitfinex hacked funds, the U.S .government is now one of the largest holders of [b]itcoin.” (crypto influencer and entrepreneur Dan Held) … “Private fund advisers, through the funds they manage, touch so much of our economy. Thus, it’s worth asking whether we can promote more efficiency, competition, and transparency in this field.” (Securities and Exchange Commission chief Gary Gensler in The Wall Street Journal)
DISCLOSURE This is for information only
