• The total crypto market capitalization has remained above $1 trillion despite a recent 5.5% weekly decline and a failed test of the channel’s upper band on Feb. 21.
• Regulators have recently created FUD about cryptocurrencies, including a U.S. court ruling regarding emojis and the IMF issuing guidance on how countries should treat crypto assets.
• Despite this, investors remain cautiously optimistic with room for an additional 3.5% correction down to $1.025 trillion market capitalization still sustaining the bullish formation.
Positive Crypto Sentiment
A 5.5% weekly decline in the total crypto market capitalization might have sucked the wind out of some altcoins, but it has done little to alter traders‘ bullish point-of-view. The ascending channel initiated in mid-January has room for an additional 3.5% correction down to $1.025 trillion market capitalization while still sustaining the bullish formation, indicating that investors remain cautiously optimistic despite recent negative remarks from regulators.
U.S Court Ruling Regarding Emojis
On Feb 22nd, a United States district court judge ruled that emojis such as the rocket ship, stock chart and money bags infer „a financial return on investment.“ This ruling was made against Dapper Labs in regards to their NBA Top Shot Moments which allegedly violated security laws by using such emojis to denote profit .
IMF Guidance On Crypto Assets
The International Monetary Fund (IMF) released guidance on Feb 23rd for how countries should treat crypto assets, strongly advising against giving Bitcoin legal tender status due to potential risks it poses to monetary policy, capital flow management measures and fiscal risks if widely adopted by nations around the world .
Cautious Optimism Despite FUD
Despite these warnings from regulators creating fear, uncertainty and doubt (FUD) around cryptocurrency investments , investors remain cautiously optimistic after a new round of negative remarks from regulators . The total crypto market cap remains above the psychological $1 trillion mark and provides room for further correction before affecting long term trends .
Conclusion
Overall , traders continue to display positive sentiment and belief in further upside despite recent news from regulators that could potentially negatively affect the cryptocurrency sector . By remaining above the psychological $1 trillion mark , there is evidence that investors remain cautiously optimistic about future price movements .