Bitcoin (BTC) price hit a new all-time high above $ 40,000 on Jan. 7, after rising more than $ 5,000 in less than 24 hours.
The $ 40,000 barrier marks a significant milestone for the highest-ranking cryptocurrency. According to Matt Blom, Head of Global Sales at EQUOS:
“Bitcoin’s march to $ 40,000 was driven by fresh capital from huge hedge funds, corporate coffers, and an investor public awareness that all is not well in the world of fiat. It’s easy to forget that we are still in the very early stages of adoption. “
Blom added that instead of trying to “get the top”, investors should just “enjoy the ride”.
Shortly after Bitcoin topped $ 40,400, it came under significant selling pressure, with the price dropping to $ 36,600 before buyers came back to take advantage of the rapid drop in prices.
Bitcoin’s 24-hour volume has hit a new all-time high of $ 82.4 billion and a number of top cryptocurrency exchanges have experienced outages and connectivity issues.
Stocks and altcoins rise higher
Traditional markets also traded positively as the US presidential election results now appear final with the Democrats in control of the presidency and both houses of Congress.
The S&P 500, Dow Jones Industrial Average and NASDAQ 100 are up on the day, up 1.42%, 0.71% and 2.37%, respectively. The 10-year government bond is also well above the 1% mark, trading at $ 1.076 at the time of writing.
Bitcoin’s rise above $ 40,000 increased the dominance rate to 69.1%, but this did not negatively affect altcoin prices. One of the notable factors of the day was XRP, which is up 38.59% to $ 0.35 in the past 24 hours.
The price of Ether (ETH) also continued to rise, setting a new high for 2020 at $ 1,282 as the largest altcoin hits its all-time high of $ 1,400.
Other notable artists over the past 24 hours include Nano and Yearn.finance’s YFI, which rose 77.33% and 20.93%, respectively.
While many analysts continue to call for new daily all-time highs for Bitcoin, crypto trader Scott Melker advised caution, saying in private comments to Cointelegraph Melker:
“Besides being a psychological level and a round number, I don’t think 40K is particularly important. From a technical point of view, there is no resistance ahead – just blue skies because Bitcoin is in parabolic pricing. The expectation would certainly be that a major correction will eventually occur, but it’s a breeze to try and tell the time or assume that an arbitrary number like 40K will be the top. “