Bitcoin has started the day posting losses. At press time, the largest cryptocurrency by market cap is trading at $39,347.15 (-2.26%), according to CoinMarketCap.
For its part, Ether has fallen to $2,454.41 (-3.32%), while Tether has dropped by 0.06% and is now trading at $0.999.
FxPro's team of analysts say:
"Bitcoin has lost more than 3% of its value over the past 24 hours and is currently trading at $39,000 amid a heightened state of alert in the traditional financial markets. As a result, the price of the market's largest crypto has been trading below $40,000, although it is receiving some support since the start of the day.
The rest of currencies on the top 10 are declining at a similar pace to Bitcoin. Against the backdrop of gradual altcoin sell-offs, BTC's dominance rate is growing, now reaching 45%. Overall, this is a worrying sign for the market, pointing to negative sentiment among retail altcoin traders.
The bulls and bears are likely to play a tug-of-war around the current levels for some time to come, but the bears are likely to be stronger this time around. The El Salvador's factor, as well as statements from Elon Musk and MicroStrategy, seem to have regained their potential, while levels around $30,000 and above during the rally have not attracted enough investors to keep up the pace of growth safely.
The problem with Bitcoin lies in the fact that it needs a constant boost in the form of purchases by new investors to keep growing. However, these end up ending sooner or later.
Leading venture capitalist Tim Draper has said he expects new all-time highs of around $250,000 by the end of 2022. Only time will tell if he is right, but the current situation still looks very alarming."
According to CoinMarketCap’s ranking, all currencies on the top 10 are in red.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $1,633,029,921,332.
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