Altcoin’s recent gains have come under pressure as the price of Bitcoin (BTC) has fallen to test lower support levels after reaching a new high of $ 41,940.
Following Bitcoin’s push to more than $ 40,000 on January 7, the top cryptocurrency faced selling pressure that saw the price as low as $ 36,600. As was the case during the current rally, investors bought the decline rapidly and the BTC price reached a new high of $ 41,940 on January 8th.
Market sentiment continues to improve as the inflow of institutional investors to cryptocurrencies continues to rise. As reported by Cointelegraph, Michael Sonnenshein, CEO of Grayscale Investments, says that pension funds have started using the Grayscale family of funds to invest in Bitcoin.
CN Cr Mad Money host Jim Cramer pointed out that the rise in cryptocurrencies comes as the price of gold remains under pressure, suggesting that the mainstream story about Bitcoin and digital assets is starting to change.
While it is difficult to determine how long the Bitcoin price can maintain its current momentum, it is clear that with each drop, institutional and retail investors are buying the price powerfully and pushing to new highs.
Stocks fall after uncertainty over next stimulus round
After the S&P 500, NASDAQ and Dow reached new highs on January 7, it became less strong today when it became clear that the stimulus bill that many expect from US lawmakers is still facing significant roadblocks.
The major indices all fell under early selling pressure, but each was able to recover to end the day in the black. The S&P 500 closed with a gain of 0.55%, while the NASDAQ and DOW closed the day with 1.28% and 0.18% respectively.
Bitcoin dominance rises as altcoins repayment
While Bitcoin has traded in a range between $ 36,660 and $ 42,000 over the past 24 hours, altcoins are facing increasing selling pressure.
As the weekend approached, sales pressure began to increase across the board, indicating the possibility of further downturns as the market sought to establish a new trading range.
If Bitcoin price finds support or enters a consolidation phase, altcoins tend to move higher, so intraday traders will closely monitor the price action of BTC.
Ether price (ETH) is currently down 2.3% at $ 1,194, while Polkadot (DOT) and Stellar Lumens (XLM) are both down more than 6% at $ 9.15 and $ 0.289 respectively. .
The overall market capitalization for cryptocurrencies now stands at $ 1.05 billion and Bitcoin’s dominance rate is 70.5%.