Bitcoin has started the day posting losses. At press time, the largest cryptocurrency by market cap is trading at $53,652.99 (-5.63%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ether has fallen to $2,060.14 (-8.42%), while XRP has dropped by 18.99% and is now trading at $1.21.
FxPro's team of analysts say:
"Bitcoin has lost around 3% of its value on Tuesday morning and is currently trading at about $55,000 after the start of the new workweek and the arrival of institutions failed to keep up with demand. On the contrary, the sharp drop suffered over the weekend is seen as a sign of a deep correction. The crypto asset sell-off over the weekend has been associated with a drop in the Bitcoin hashrate as well as the closing of retail investor positions.
The sharp decline in trading volume on the network, which has plummeted by 36% over the past day, can also be seen as a negative factor. Investors want to see more trigger news for decision making. It looks like everyone who wanted to buy the asset at a discount has already done so, and another group of investors is waiting for the price of the coin to fall further.
The total market cap of the crypto market has fallen below $2T, as almost all major coins are posting double-digit losses. So far, only Dogecoin (DOGE) has been able to hold on, and it has now become the most famous speculative instrument in the market.
Even though there is no fundamental negative news related to Bitcoin at the moment, there is a great deal of tension among market participants, as even the optimists are aware that the market cannot pass so many all-time highs without corrections. BTC's fall below $50,000 could well trigger a wave of closing positions as well as the deepest local correction in recent years."
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 $1,933,879,220,909.
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