Altcoin’s recent gains have come under pressure as the price of Bitcoin (BTC) has dropped to retest lower support levels after reaching a new record of $ 41,940.
After Bitcoin pressure on January 7 above $ 40,000, the main cryptocurrency faced selling pressure that saw the price drop to as much as $ 36,600. As has been happening during the current high, investors quickly bought the drop and the price of BTC rose to a new high of $ 41,940 on January 8.
Market sentiment continues to improve, as the influx of institutional investors for cryptocurrencies continues to increase. As reported by Cointelegraph, Grayscale Invesetments CEO Michael Sonnenshein says that pension funds have started using the grayscale fund family to invest in Bitcoin.
CNBC Mad Money presenter Jim Cramer pointed out that the rise in cryptocurrencies comes as the price of gold continues to face pressure, indicating that the dominant narrative about Bitcoin and digital assets is starting to change.
While it is difficult to determine how long the price of Bitcoin can maintain its current bullish moment, it is clear that with each fall, institutional and retail investors are buying vigorously and pushing the price to new highs.
Stocks fall after uncertainty about next stimulus round
After setting new highs on January 7, the S&P 500, NASDAQ and Dow showed less strength today as it became clear that the stimulus bill that many expected from US lawmakers still faces significant obstacles.
All major indices fell under initial selling pressure, but each was able to mount a recovery to close the day in the blue. The S&P 500 closed with a gain of 0.55%, while NASDAQ and DOW ended the day with an increase of 1.28% and 0.18%, respectively.
Bitcoin dominance increases as altcoins recede
Although Bitcoin has been trading in the range of $ 36,660 to $ 42,000 in the past 24 hours, altcoins are facing increasing selling pressure.
As the weekend approaches, selling pressure begins to increase across the board, indicating the possibility of further downturns, as the market seeks to establish a new trading range.
If the Bitcoin price finds support or enters a consolidation phase, altcoins tend to rise, so intraday traders are likely to keep an eye on BTC price action.
The price of Ether (ETH) is currently below 2.3% and trading at $ 1,194, while Polkadot (DOT) and Stellar Lumens (XLM) have dropped more than 6% and are trading at $ 9.15 and $ 0.289 , respectively.
The overall capitalization of the cryptocurrency market is now $ 1.05 trillion and Bitcoin’s dominance rate is 70.5%.