Bitcoin has started the day with a negative dynamic. At press time, the largest cryptocurrency by market cap is trading at $11,775.63 (-1.73%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ethereum has fallen to $391.35 (-1.24%), while XRP has grown by 0.61% and is now trading at $0.298.
FxPro's team of analysts say:
"Bitcoin has lost about 1% of its value over the past 24 hours. Meanwhile, the greed and fear index has grown by 6 points to 84 over the same period. Bitcoin is also increasingly vulnerable to a possible dollar rally, as the crypto has recently shown a negative correlation with the US national currency. The overall improvement in the economic situation following the release of US employment data, which has boosted both the dollar and stocks, may also become a negative factor for Bitcoin, as the cryptocurrency has attracted demand from large investors seeking to diversify part of their portfolio due to the poor economic situation.
However, it should be noted that in addition to short-term statistics, there is a significantly greater negative background to the consequences of the first wave of the coronavirus pandemic and the start of the second. Central banks have long been actively stimulating economies, and this effect will positively affect popular indicators of economic health for some time, but this does not necessarily mean that printing money will solve fundamental problems. This means we will continue to see an increase in market turbulence, which could positively affect Bitcoin."
According to CoinMarketCap’s ranking, 9 currencies on the top 10 are in red.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $360,379,361,118.
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