Bitcoin has started the day posting minor losses. At press time, the largest cryptocurrency by market cap is trading at $10,321.88 (-1.12%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ethereum has fallen to $326.24 (-3.92%), while XRP has decreased by 3.18% and is now trading at $0.224.
FxPro's team of analysts say:
"Bitcoin has not stopped falling after the last correction phase experienced on September 21. This morning, the reference crypto has lost almost 2% of its value and is trading at around $10,300. Therefore, Bitcoin is reacting to the growth of the dollar against almost all currencies as well as to the uncertainty surrounding the economic panorama, factors that are negatively affecting risk assets. The fears of a second wave of the coronavirus pandemic are also having an extremely negative impact on traditional markets.
Since institutional investors accessed Bitcoin, the currency has suffered along with the rest of the market in global corrections. Even though Bitcoin is currently falling, the crypto's dominance index has increased by almost 1.5% during the week. This may suggest fears about other cryptos are even greater. While Bitcoin is proving over and over again is it able to grow back, altcoins cannot boast about it.
The trading volume of Bitcoin is still relatively low at around $24B. Although when the price of the crypto peaked in 2017, a similar trading volume was considered a historical high, now no one is surprised by rallies even above $70B. However, a significantly higher amount of funds in circulation acts as a constraint on price jumps in both directions. In the near future, the development of the situation in the traditional market will become an indicator of the dynamic of Bitcoin prices."
According to CoinMarketCap’s ranking, 8 currencies on the top 10 are in red.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $325,487,834,227.
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