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Mexico is going to accept Bitcoin

Bitcoin was down 1% on Wednesday, ending the day near $37,600, but it is losing another 7% on Thursday morning, trading below $35,000. Ethereum has lost 12% to $2,340 in the last 24 hours. Leading altcoins show a proportionate decline.

The total capitalization of the crypto market, according to CoinMarketCap, decreased by 8.4% over the day, to $1.57 trillion.

The index of fear and greed of the crypto market fell by 2 points to 23, but being updated once a day, it clearly does not take into account the latest dramatic movements.

The aggravation of tension around Ukraine exerted pressure on risky assets. There are growing risks of escalation associated with the introduction of Russian troops into Donbass. In such a situation, risky assets may continue to decline further.

At the moment, we see that cryptocurrencies are selling stronger than developed world stocks (although not as extreme as Russian ones), confirming the risky nature of these assets and how they are not a replacement for gold.

According to Glassnode, the wallets of long-term investors (hodlers) hold record volumes of BTC (76.5%). The volume of bitcoins, which have been without movement for more than 10 years, is also growing (12.6%). Thus, almost 90% of all currently available coins are out of the market.

Now another country besides El Salvador may accept bitcoin as a means of payment. Senator Indira Kempis is developing a bill on cryptocurrencies and intends to convince the Mexican government to follow the "Salvadorian scenario" by recognizing BTC as a means of payment.

Former SEC official Joseph Hall called the department's chances of losing the lawsuit against Ripple high. The regulator accuses the company of selling unregistered securities under the guise of XRP tokens.

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Alexander Kuptsikevich

Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.

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