Bitcoin and Ethereum bounced back slightly following almost a week of losses, as reports circulate that the European Union is considering the adoption of cryptocurrencies.
Bitcoin dropped back below the key support level of US$40,000 over the weekend but was trading 1.23% higher today at US$39,291.
Ethereum was also up 3.35%, trading at US$2,747.
According to Naeem Aslam, a market analyst at Avatrade, recent reports suggest that the European Union may be amenable to adopting cryptocurrencies over the next few years.
“The European Union is open to the idea of cryptocurrencies becoming the norm over the next few years, but it must be done in such a way that terrorists and criminal organizations do not benefit from the anonymity provided by blockchain technology,” Aslam said.
Aslam adds that “blockchain technology will assist in bringing billions of people around the world into the financial system who do not currently have bank accounts.”
The Russia and Ukraine problem, Aslam adds, is likely to cause further volatility in the stock markets.
It is safe to assume the same can be expected for the crypto markets, which has been slowly starting to mirror the stock markets, according to several reports.
Ukraine has also legalised crypto, while Russia is the in process of drafting legislation to accept it as a legal tender.
In some of the altcoins, Solana was up 10.28% to US$95.50, Terra was up 8.6% to US$52.20 and Cardano was up 3.68% to US$0.9792 as most crypto currencies bounced back.