On Thursday, Bitcoin lost 0.4%, ending the day around $36,200, and Ethereum fell 2.5%. The other leading altcoins in the top ten also mostly saw declines, from XRP down 0.9% to Terra with -8.3%. According to CoinGecko, the total capitalization of the crypto market sank by 2.3% per day, to $1.72 trillion.

Bitcoin tried to strengthen on Thursday morning but began to decline in the American session along with US stock indices. The US stock market fell following the results of trading on Thursday, although it opened with growth. The high-tech Nasdaq suffered particularly heavy losses.

Investors continue to withdraw from US stocks amid the expected tightening of the US Federal Reserve's monetary policy. The day before, the central bank, following its meeting, signaled that it would start raising interest rates in March, curtailing the entire stimulus program at the beginning of the month. In the future, the regulator will begin to reduce the Fed's balance sheet.

In such circumstances, investors will continue to reduce their positions on risky assets, and Cryptocurrencies may be hit first.

Meanwhile, bitcoin is trying to stay above the $35,000 mark, taking advantage of some slowdown in the fall of the stock markets. However, if the fall in stocks accelerates, the crypto market will also accelerate its decline.

The US Securities and Exchange Commission (SEC) has rejected Fidelity's application to launch a bitcoin ETF. Fidelity itself warned investors that bitcoin was in a “liquidity storm” due to high volatility in the stock market.

This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.