Bitcoin has started the day in a negative mood. At press time, the largest cryptocurrency by market cap is trading at $45,438.97 (-13.49%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ether has fallen to $3,312.48 (-14.96%), while Cardano has dropped by 14.51% and is now trading at $2.32.
FxPro's team of analysts say:
"Yesterday, Bitcoin rallied to $52,600 and fell back to $46,700. Thus, the saying "buy on rumors, sell on facts" has been demonstrated to perfection.
Even though experts at Standard Chartered have said they expect Bitcoin to grow to $175,000 and Ether to $35,000, this has not helped. Neither has a Reddit user's request to 'invest $30 in Bitcoin' to support El Salvador.
At the moment, trading volume in the crypto market has fallen to $424 billion, while liquidations of long positions have climbed to $3.61 billion.
And all this is happening despite the news that BTC has become the official currency of the Republic of El Salvador.
Credit rating agencies such as Fitch have been quick to point out the weaknesses of this decision. In particular, the Republic's insurance industry will suffer a special blow. As a result, bonds with a B rating are circulating, and now the situation will be exacerbated by the presence of an unstable crypto.
Despite all the risks, a draft bill has been introduced in Panama's parliament that aims to grant BTC the status of a means of payment.
What if these 'rumors' help the price of the cryptocurrency not to fall below the next support line at $46,000?"
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 $2,012,174,243,459.
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