Meanwhile, genius investor Cathy Wood of Ark Invest is preparing for a BTC crash.
The total capitalization of the crypto market, according to CoinGecko, decreased by 1.5% over the week, to $1.96 trillion. The Bitcoin Dominance Index rose 1% to 40.7% due to altcoin weakness.
Bitcoin strengthened in the first half of the week and tested early January highs above $45,800 in the middle. The situation changed on Thursday after the release of data on inflation in the US, which updated the maximum levels for 40 years. US stock indices fell at the end of the week, which negatively affected cryptocurrencies, which are traded with a significant correlation with other risky assets.
Late last week, the US Federal Reserve announced its unscheduled meeting to be held on Monday, February 14th. As a result of the meeting, the regulator may well raise rates without waiting for March. And perhaps even a "double" increase, immediately by 0.50%. A tightening of monetary policy could hit all risky assets, including cryptocurrencies.
On February 12, the Bitcoin network hashrate hit an all-time high of over 248 EH/s. The indicator indicates an increase in the stability of the blockchain and the development of its infrastructure.
Brilliant investor Cathy Wood, founder and fund manager of Ark Invest, was actively selling Grayscale Bitcoin Trust shares for ten days in February, writes Cryptor. Securities are units backed by spot bitcoins that are stored in the wallets of the management company Grayscale.
The shares were bought in July last year, during the upward reversal of BTC. Obviously, Wood does not rule out new lows for BTC any time soon.
The Hungarian Central Bank called on EU countries to ban trading and mining of cryptocurrencies. The Bank of Russia announced its desire to reduce the involvement of citizens in cryptocurrencies. The Ministry of Finance of the Russian Federation proposed to limit the list of cryptocurrencies traded in Russia.