By Samuel Indyk
Investing.com – Most major cryptocurrencies were trading with losses on Friday morning as again struggled to break above $50,000. The second-largest cryptocurrency by market cap, , was trading lower but found support ahead of the psychological $4,000 level.
Only five of the top 100 cryptos trade with gains
Of the top 100 cryptocurrencies, only five are trading in positive territory on Friday morning. Those are:
The total market capitalisation of all cryptocurrencies has declined to around $2.25 trillion, according to data from CoinMarketCap. The record total market cap for all cryptocurrencies reached almost $3 trillion on 10th November this year, the day Bitcoin hit its record price of just below $69,000.
Where next for Bitcoin? What the analysts are saying
With Bitcoin remaining below $50,000, some analysts are calling for a deeper correction in the near term.
“Bitcoin is back below $50,000 and struggling to get any real traction above as risk appetite cools,” Craig Erlam, Senior Market Analyst at OANDA said in an emailed note on Thursday. “It doesn’t bode well for the cryptocurrency in the near term and as we’ve seen so often in the past, corrections can be deep and painful.”
Victoria Scholar, Head of Investment at interactive investor, is also cautious following recent price action.
“Bitcoin has shed more than 30% since the intraday peak logged in November, trading in a descending trendline and gapping lower at the start of the month,” Scholar said in an emailed note. “Technical indicators suggest that price action continues to look bearish with the next major support hurdles at $43,500 and at the psychological round number $40,000.”
In the very near term, focus will turn to Friday’s US figures (released at 13:30GMT) which will give a clearer picture of the current inflation situation. A higher-than-expected number could cement expectations that the Fed will speed up the tapering of asset purchases when it meets next week.
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