Bitcoin has started the day with a negative dynamic. At press time, the largest cryptocurrency by market cap is trading at $7,952.12 (-4.53%).
Chart of the USD/BTC trading pair from EXANTE
For its part, Ethereum has fallen to $140 (-3.38%), while XRP has dropped by 2.81% and is now trading at $0.207.
According to CoinMarketCap’s ranking, 9 currencies on the top 10 are in red.
Yesterday, Bitcoin managed to break above the $8,000 level and even almost reached $8,400, however, it started to fall shortly afterwards.
Analysis firm Digital Assets Data has recently reported over the past year around 10.7 million Bitcoins have remained unchanged in their wallets, the highest figure since 2017. According to Komodo platform CTO Kadan Stadelmann:
"The sheer size of unmoved bitcoin is definitely a sign of the developing community of HODLers."
He believes this may be happening because many investors expect Bitcoin price to soar after May's halving.
The BTC dominance index has fallen from yesterday’s 69% to 68.7%.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $210,460,694,216.
FxPro's team of analysts say:
"Bitcoin has started the year with many changes, which has made many experts believe we may be witnessing a tendency change.
Geopolitics is one of the possible reasons why the crypto's price is growing. The possibility of a large-scale conflict in the Middle East has positively affected a large number of assets.
However, another possible catalyst emerged shortly afterwards: the issuance of 500 million USDT tokens on January 7. All news related to this stablecoin are usually associated with changes in the prices of both Bitcoin and the rest of altcoins.
Over the last 24 hours, Bitcoin has lost over 5% of its value and is currently trading below the $8,000 level. The optimism of bulls has been quickly eclipsed by the fact that, when the $8,400 level was reached, Bitcoin's overbuying levels were higher than those recorded after China announced it plans to push blockchain adoption."
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