The first cryptocurrency fell to $37,100 last week. This was followed by BTC's soaring to $42,500. Digital gold is trading at $39,100 and has a market capitalisation of $743 billion.
According to CoinGecko, the world's largest aggregator of virtual asset data, the total capitalisation of the crypto market fell 1.3% to $1.81 trillion in the past week.
In November 2021, Bitcoin hit an all-time high, soaring above the $69,000 mark. Since then, the value of the coin has fallen by more than 40%.
The unpredictable behaviour of the digital coin market has experts making the most unexpected forecasts about its future. For example, many crypto-enthusiasts believe Bitcoin will remain in a small value range in the near future. The reason for the main digital coin's indecision, in their view, remains the foggy prospects in the global economic and political situation. The serious conflict in eastern Europe and the high risks are preventing investors from making big investments in both the crypto market and US stock exchanges.
However, some experts believe that the current volatility in global markets can benefit bitcoin. For example, Steve Wozniak, a well-known American computer programmer, recently said that BTC will soon reach the $100,000 mark. Wozniak believes that the main incentives for the digital coin to take such a leap are the tense geopolitical situation, the constantly growing interest of investors in cryptocurrencies and a soaring inflation rate.
By the way, many analysts have repeatedly called Bitcoin one of the most inflation-resistant assets in the world.
In any case, the focus of this week's crypto market remains the US Federal Reserve's meeting scheduled for Wednesday.
Meanwhile, Russians coming to the United Arab Emirates are actively selling billions of dollars' worth of digital currency. Amid fears of their own assets being locked up, they are seeking to convert crypto into fiat money and then buying real estate in the UAE.
Earlier, Tesla CEO Elon Musk revealed on his Twitter account that he had no plans to get rid of cryptocurrencies, including Bitcoin, Ethereum and Dogecoin. Musk explained his decision with data from an article on inflation in the international business newspaper Financial Times.
Musk went on to advise his social media followers to invest in physical assets. "It is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high," he wrote.
Following the Tesla CEO's tweet, the value of Dogecoin instantly rose by 10%.
