Risk appetite in both traditional and cryptocurrency markets surged this week, with US cryptocurrency funds drawing over $7.5 billion in weekly inflows, effectively recouping losses from earlier months. Bitcoin experienced significant gains, particularly after news of ceasefire negotiations between Russia and Ukraine emerged. Analyst Raoul Pal emphasized the urgency for investors to acquire more cryptocurrencies and NFTs in light of ongoing fiat currency debasement, asserting their status as potentially undervalued assets. The strong demand for risk assets was mirrored in the crypto sector, evidenced by record withdrawals of Bitcoin from exchanges. Furthermore, VanEck announced plans to launch a private fund targeting projects within the Avalanche blockchain ecosystem. Yield-bearing stablecoins have grown significantly this year, accumulating $11 billion in circulation. Tether, the leading stablecoin issuer, now holds over $120 billion in US Treasury bills, positioning itself as a major player in dollar liquidity distribution. Overall, the cryptocurrency and DeFi markets exhibited noteworthy resilience and growth amid economic uncertainties, with most of the top cryptocurrencies recording gains over the week.

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