Momentum: Bitcoin's break above $ 40,000 and the strong double-digit gains of several altcoins all prove that a bullish market is on. However, some analysts have also pointed out that $ 40,000 is not an important price level and it is difficult to predict when Bitcoin will usher in a major correction.
On January 7, the price of Bitcoin (BTC) rose by more than $ 5,000 in less than 24 hours, setting a record high of over $ 40,000.
The $ 40,000 mark is an important milestone for the cryptocurrency with the largest market value. According to Matt Blom, Head of Global Sales and Trade at EQUOS:
"The driving force behind Bitcoin's move towards $ 40,000 comes from the huge amount of hedge funds, new capital from corporate reserves, and the belief of the investing public today that the world of fiat currencies is full of collapse. It's easy to forget that we are still at the stage. very early adoption of encryption. "
Blom added that investors should not only "find the best" but "enjoy the journey".
As soon as Bitcoin broke $ 40,400, Bitcoin came under enormous selling pressure. Prices fell back to $ 36,600 before buyers reacted to the swift decline.
Bitcoin's 24-hour trading volume hit a record high of $ 82.4 billion, and some of the top cryptocurrency exchanges are experiencing trading disruptions and connection problems.
Stocks and altcoins are rising
The outcome of the current US presidential election appears to be a definite conclusion, the Democratic Party has won the presidency and both houses of Congress, and positive deals are also emerging in traditional markets.
The S&P 500, Dow Jones Industrial Average and Nasdaq 100 all gained today, up 1.42%, 0.71% and 2.37%, respectively. The 10-year Treasury bond also continues to recover above the 1% mark At press time, trading at $ 1,076.
Bitcoin jumped above $ 40,000 and the market dominance rate increased to 69.1%, but this had no negative impact on the altcoin price. Key trends for the day include XRP, which rebounded 38.59% to $ 0.35 in the last 24 hours.
The price of Ether (ETH) has also continued to surge, reaching new highs in 2020, reaching $ 1282.This largest altcoin hit an all-time high of $ 1,400.
In the past 24 hours, other outstanding performers include Nano and Miss.finance from YFI, increasing 77.33% and 20.93%, respectively.
Although many analysts continue to call for Bitcoin to hit daily record highs, crypto trader Scott Melker advises proceeding with caution. In personal comments to Cointelegraph, Melker stated:
"Apart from being a psychological level and a round number, I don't think that $ 40,000 is a very important position. From a technical point of view, there is no resistance ahead - just clear skies, because Bitcoin is on the price discovery parabola. Of course there will be calls. back, but trying to give it time or think that the $ 40,000 figure would top it would be foolish.