The price of Bitcoin (BTC) reached a new high of more than $ 40,000 on January 7, after rising by more than $ 5,000 in less than 24 hours.
The $ 40,000 barrier is a major milestone for the top-rated cryptocurrency. According to Matt Blom, Head of Global Sales Trading at EQUOS:
“Bitcoin’s rise to $ 40,000 is driven by fresh capital from large hedge funds, corporate treasury and the awareness of the investment public that all is not well in the world of fiat. It is easy to forget that we are still in the very early stages of adoption. ‘
Blom added that instead of ‘choosing the top’, investors should just ‘enjoy the ride’.
Shortly after Bitcoin exceeded $ 40,400, it had a significant selling pressure that dropped the price by $ 36,600 before buyers returned to take advantage of the rapid price drop.
Bitcoin’s 24-hour volume reached a new high of $ 82.4 billion, and a number of top exchanges with cryptocurrencies experienced interruptions and connectivity issues.
Stocks and altcoins move higher
Traditional markets have also seen positive trade, as the results of the U.S. presidential election now appear to be finalized, with Democrats controlling the presidency and both houses of Congress.
The S&P 500, Dow Jones Industrial Average and NASDAQ 100 are all higher on the day, up 1.42%, 0.71% and 2.37% respectively. The ten-year government bond also rose sharply above the 1% point and traded at $ 1,076 at the time of writing.
The rise of Bitcoin above $ 40,000 increased its dominance to 69.1%, but it did not negatively affect altcoin prices. Striking movers of the day included XRP, which rose 38.59% to $ 0.35 over the past 24 hours.
The Ether (ETH) price also continued to rise, setting a new 2020 high of $ 1,282 as the largest altcoin reached its $ 1400 record.
Other notable artists over the past 24 hours include Nano and Ynfinance’s YFI, which rose 77.33% and 20.93% respectively.
While many analysts continue to call for new daily highs of Bitcoin, crypto-trader Scott Melker advised caution, and in private comments to Cointelegraph, Melker said:
‘Except that it’s a psychological level and a round number, I do not consider 40K to be particularly important. From a technical perspective, there is no resistance – just a blue sky because Bitcoin is in parabolic price development. The expectation would certainly be that eventually a major correction will come, but it is a foolish command to try it time or to assume that an arbitrary number like 40K will be the top. ”