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The price of Bitcoin (BTC) hit a new high above $ 40,000 on January 7 after the price rose more than $ 5,000 in less than 24 hours.
The $ 40,000 barrier marks a milestone for the top-ranked cryptocurrency. According to Matt Blom, Global Sales Manager at EQUOS:
“Bitcoin’s move to $ 40,000 was driven by new capital from huge hedge funds, corporate treasury, and the investing public’s awareness that all is not well in the fiat world. It’s easy to forget that we are still in the very early stages of adoption. “
Blom added that instead of trying to ‘pick the top’, investors should just ‘enjoy the trip’.
Shortly after Bitcoin broke above $ 40,400, it came under significant selling pressure which saw its price drop as low as $ 36,600 before buyers returned to take advantage of the rapidly falling prices.
24-hour Bitcoin volume hit a new record high of $ 82.4 billion, and a number of the major cryptocurrency exchanges have experienced blackouts and connectivity issues.
Stocks and altcoins are on the rise
Traditional markets have also seen positive trade as the results of the presidential election in the United States 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 10-year government bond has also climbed firmly above the 1% mark, trading at $ 1.076 at the time of writing.
Bitcoin’s skyrocketing above $ 40,000 raised its dominance rate to 69.1%, but this did not negatively impact altcoin prices. Among the major players for the day was XRP, which rose 38.59% to $ 0.35 in the past 24 hours.
The price of ether (ETH) also continued to climb, setting a new 2020 high of $ 1,282 as the largest altcoin continues its high of $ 1,400.
Other notable performances over the past 24 hours include Nano’s YFI and Yearn.finance, which saw increases of 77.33% and 20.93%, respectively.
As many analysts continue to call for new daily Bitcoin highs, crypto trader Scott Melker advised caution, and in private comments to Cointelegraph Melker said:
“Beyond being a psychological level and a round number, I don’t consider 40K to be particularly meaningful. From a technical standpoint, there is no resistance ahead – just blue skies because Bitcoin is on its way to parabolic price discovery. Some major correction is certainly expected to happen eventually, but it makes no sense to try to time it or to assume that an arbitrary number like 40K will be the first.
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