Bitcoin has started the day posting significant gains. At press time, the largest cryptocurrency by market cap is trading at $36,797.76 (+7.26%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ether has risen to $2,542.33 (+0.35%), while Tether has dropped by 0.06% and is now trading at $1.
FxPro's team of analysts say:
"Bitcoin has received unexpected support from El Salvador, where the currency has acquired official legal tender status. The country has just become the first in the world to do so, which is why the reaction has been so strong. Over the past 24 hours, Bitcoin has added more than 9% and has been trading around $37,000. Prior to the excitement over the adoption of BTC as legal tender in one country, the currency came close to testing the $30,000 round value.
All altcoins are following Bitcoin's growth trend. The total market capitalization of digital currencies has risen more than $100 billion in one day. The greed and fear index for Bitcoin and the largest cryptocurrencies increased by 7 points over the last day, but is still in the 'extreme fear' area.
The market will have to digest the reaction to this event and it is likely to be overdone. Whatever the underlying reasons for accepting BTC as a means of payment, everyone is pleased and encouraged by the rise in its price. The main danger for BTC now is a likely massive wave of profit-taking by investors who have lost faith in the crypto's future prospects within the current price cycle."
According to CoinMarketCap’s ranking, 8 currencies on the top 10 are in green.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $1,603,763,722,920.
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