Bitcoin has started the day in a positive mood. At press time, the largest cryptocurrency by market cap is trading at $42,637.74 (+1%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ether has risen to $3,228.23 (+3.51%), while Tether ha added 0.03% and is now trading at $1.
Despite the recent drop and widespread fear in the market, large investors with more than 1,000 BTC in their portfolios continue to accumulate Bitcoin.
Whales started accumulating Bitcoins after their value fell below $50,000; according to analysts, big players tend to sell at peak prices and buy assets at rock-bottom levels, despite the general panic and FUD.
FxPro's team of analysts say:
"The market capitalization of cryptocurrencies has once again surpassed $2 trillion, adding nearly 2.7% over the past 24 hours. At the same time, Bitcoin has not kept pace with the rising price of altcoins: BTC has grown by 1.25% compared to ETH's 4% growth, while other leading coins have registered an increase of between 3% and 7%.
Purchases in altcoins surged after the leading crypto managed to defend the $40,000 mark. It was as a show of faith in the near-term prospects of the sector, which has once again allowed investors to invest in potentially more undervalued coins and projects.
The crypto greed and fear index has added just 1 point over the last day to 22, but we see that investors have taken the recent drop as a buying opportunity.
On the chart, Bitcoin has bounced off a psychologically important support level for the second time since September. In addition, the RSI indicator on the daily charts has broken out of the oversold zone, giving a signal for a suspension of bearish momentum."
According to CoinMarketCap’s ranking, 9 currencies on the top 10 are in green.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $2,011,440,575,592.
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