This week, the cryptocurrency market was correcting downwards, but then digital assets managed to regain lost ground: now, BTC is trading at 70200.00 ( 5.3%), ETH is at 3560.00 ( 4.0%), USDT is around 1.0000 ( 0.1%), BNB – near 610.0 ( 3.5%), and SOL – around 186.00 ( 2.3%). The total market capitalization amounted to 2.65T dollars, and the share of BTC on it grew to 52.17%.

The initial strength of the sector was associated with a change in the position of large institutional investors. Last week, they exited Bitcoin ETFs, resulting in a total outflow of capital from funds amounting to more than 887.0M dollars. Now, the trend has reversed. Since Monday, the influx of funds into exchange-traded instruments based on digital currencies has resumed and amounts to 845.0M dollars at the end of the week. Experts believe that ordinary traders also changed their mood and started buying, taking advantage of the price correction. The upward dynamics of crypto assets were facilitated by comments from the head of the US Fed, Jerome Powell, who, following the regulator’s meeting, said that the increase in inflation pressure in January-February did not change the general trend towards a slowdown in consumer price growth. These statements convinced traders that borrowing costs would soon adjust, supporting, among other things, assets alternative to the dollar.

In the middle of the week, leading tokens recorded increased downward dynamics against legal interactions between the state and cryptocurrency companies. Thus, the District Court of New York partially upheld the US Securities and Exchange Commission (SEC) claim against the Coinbase exchange, recognizing that its Wallet application contributed to the distribution of unregistered securities among clients. It has caused concern in the market, as it may allow the court case against the management to continue and support the opinion of regulator officials that all digital assets, except BTC, are securities. As a result of these events, Coinbase shares lost more than 3.0%. The SEC demanded that Ripple be assessed a new fine of 2.0B dollars based on an earlier ruling that sales of XRP to large investors violated US securities laws, in response to which the corporation’s lawyers called the amount unreasonable and inflated. Finally, the US Attorney’s Office accused the cryptocurrency platform KuCoin. According to the authorities, over eight years, the company served more than 30.0M clients for 9.0M dollars without complying with anti-money laundering regulations. The indictment calls for heavy fines, confiscation of several assets, and a ban on further trading.

Major cryptocurrencies are trying to recover, and traders are awaiting the release of February data on the core US personal consumption expenditure index, which is of particular importance to the US Fed. The indicator may remain at 2.8% YoY and decline from 0.4 % to 0.3% – MoM, supporting the view that interest rate adjustments will begin in June. However, if the indicators grow, regulator officials may postpone the transition to the “dovish” rhetoric to the second half of the year, and the assets alternative to the dollar will come under pressure.

Next week, the quotes for most leading digital assets may consolidate or begin to rise.