Bitcoin has started the day with a negative dynamic. At press time, the largest cryptocurrency by market cap is trading at $56,841.21 (-0.8%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ether has increased to $4,444.24 (+2.81%), while Binance Coin has risen by 0.91% and is now trading at $616.8.
FxPro's team of analysts say:
"The crypto market remains in a state of fear, although its degree continues to weaken, which is reflected in the growth of the corresponding index from yesterday's 33 points to 40. The total market capitalization of cryptocurrencies, according to CoinMarketCap, has decreased by 0.7% over the past 24 hours. However, the situation in the financial markets is firmly linked to the news about the new strain of the coronavirus and, therefore, everything can change very quickly.
The main pressure over the last day has fallen precisely in the last few hours, so investors should be prepared for more volatility as the day progresses. Fear in the financial markets, if entrenched, promises to seriously boost the price of Bitcoin and Ether.
At the moment, Bitcoin is clinging to $56,000. 5% lower, at $54,000, is a support level that if reached could result in accelerated selling. The reverse is also true, 5% above the current price, at $59,000, are local highs. The ability to gain a foothold above this level will indicate strong consumer demand."
According to CoinMarketCap’s ranking, 5 currencies on the top 10 are in green.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $2,575,425,086,697.
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