The price of Bitcoin (BTC) reached a new record, above $ 40,000 on January 7, after the price increased by more than $ 5,000 in less than 24 hours.
The $ 40,000 barrier represents a significant milestone for the top-rated cryptocurrency. According to Matt Blom, head of global sales at EQUOS:
“Bitcoin’s move to $ 40,000 was driven by new capital from huge hedge funds, corporate treasuries and investor public awareness that all is not well in the fiat world. It is easy to forget that we are still in the early stages of adoption. “
Blom added that, instead of trying to “choose the top,” investors should just “enjoy the ride.”
Shortly after Bitcoin surpassed $ 40,400, it underwent significant selling pressure that saw its price drop to $ 36,600 before buyers returned to take advantage of the rapid drop in price.
Bitcoin’s 24-hour volume reached a new record of $ 82.4 billion, and several of the top cryptocurrency exchanges experienced interruptions and connectivity problems.
Shares and altcoins rise more
Traditional markets have also seen positive negotiations, as the results of the United States presidential election now appear to be finalized, with Democrats controlling the presidency and the two 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 10-year government bond also rose steadily above the 1% mark, trading at $ 1.076 at the time of writing.
The increase in Bitcoin above $ 40,000 raised its dominance rate to 69.1%, but this did not negatively impact altcoin prices. The day’s notable moves included XRP, which rose 38.59% to $ 0.35 in the past 24 hours.
The price of Ether (ETH) also continued to rise, setting a new record of $ 1,282 in 2020, while the largest altcoin seeks its record of $ 1,400.
Other notable performances in the past 24 hours include Yano from Nano and Yearn.finance, which recorded increases of 77.33% and 20.93%, respectively.
While many analysts continue to call for new Bitcoin daily highs, crypto trader Scott Melker advised caution, and in private comments to Cointelegraph Melker said:
“In addition to being a psychological level and a round number, I don’t see 40K as particularly significant. From a technical perspective, there is no resistance ahead – just blue sky because Bitcoin is in the discovery of parabolic prices. The expectation would certainly be that a major correction would come eventually, but it is a foolish mission to try to time it or to assume that an arbitrary number like 40K will be the maximum. “