Bitcoin has started the day posting minor gains. At press time, the largest cryptocurrency by market cap is trading at $50,658.45 (+1.07%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ether has increased to $1,667.39 (+4.04%), while XRP has dropped by 5.05% and is now trading at $0.494.
FxPro's team of analysts say:
"After Bitcoin plummeted to $46,000, buyers have entered the scene and started backing the biggest crypto on the market. As a result, the coin has rebounded to $50,000. The market capitalization of Bitcoin is still around $950B, but in the near future it could be back above $1B.
The wave of decline in the altcoins market has also stopped and coins are gradually regaining their positions, however, the situation remains unstable. The direction of the market now depends completely on the reference cryptocurrency, while the outlook for Bitcoin itself depends on the situation with incentives and statements of the US monetary authorities.
The market is now discussing the returns on Tesla's investment in BTC. The theoretical return on Tesla's investment could have been around $1B, which exceeds the profit from electric car sales in 2020 by $721M. However, this is unlikely to motivate other companies to invest in Bitcoin, as everyone is aware of the risks involved in such investments.
At the moment, the market is full of optimism about a 'healthy correction,' but in fact there are already references to late 2017 and early 2018, when several waves of decline and growth were, however, replaced by a broad trend reversal."
According to CoinMarketCap’s ranking, 7 currencies on the top 10 are in green.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $1,543,312,863,326.
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