Bitcoin has started the day posting losses. At press time, the largest cryptocurrency by market cap is trading at $55,984 (-3.66%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ether has increased to $1,814.74 (+0.33%), while XRP has jumped by 9.97% and is now trading at $0.477.
FxPro's team of analysts say:
"Bitcoin, along with the whole crypto market, continues to undergo an adjustment. Over the past day, the reference crypto has lost 8% and is currently trading at around $54,500. After falling to $55,000 and initiating a buyback that has resulted in the coin recovering to $57,000, the bears have entered the scene again and have increased the pressure on the market. As a result, we still see further pressure in the market, however, we should only worry about a reversal after the coin falls below the low of the previous correction, $45,000. Until then, Bitcoin has a chance to attract buyers who were waiting for a good discount to buy the asset.
The latest stage of Bitcoin's growth has been associated with speculative expectations of increased purchases by retail investors who will receive fast cash from the new US administration. However, in fact, the price reduction may greatly frighten potential investors, who will end up with the coveted government check.
As a result, on average, the retail sector is more likely to buy into the growth wave for $70,000 rather than buying the asset at a discount in the $45,000s. Therefore, it is now up to institutional investors to return growth momentum to cryptos, while the retail sector would support this move. Conversely, a massive sell-off will occur if BTC maintains the current downward trend."
According to CoinMarketCap’s ranking, 7 currencies on the top 4 are in green.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $1,718,103,468,737.
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