Bitcoin (BTC) hit a permanent high of over $ 40,000 on Jan.7 after the price rallied over $ 5,000 in less than 24 hours.

The $ 40,000 mark is a milestone for the best cryptocurrency. According to Matt Bloom, Head of Global Sales for EQUOS:

“Bitcoin’s $ 40,000 march was fueled by new capital from huge hedge funds, company treasuries, and the investment community’s understanding that this is not the case in the world of paper money. It’s easy to forget that we’re still in the early stages of adoption. ”
Blum added that instead of trying to “pick the best”, investors should “enjoy the trip.”

Immediately after Bitcoin surpassed $ 40,400, it faced significant selling pressure that brought the price down to $ 36,600 before buyers returned to take advantage of the rapid fall in prices.

Bitcoin 24-hour volumes hit an all-new high of $ 82.4 billion, and a number of cryptocurrency exchanges suffered from disruptions and connectivity issues.

Stocks and altcoins rise
Positive trade has also been seen in traditional markets, as it appears that the results of the US presidential election are now over, and Democrats control the presidency and both houses of Congress.

The S&P 500, Dow Jones Industrial Average and NASDAQ 100 rose 1.42%, 0.71% and 2.37%, respectively. 10-year government bonds also surged above the 1% mark, trading at $ 1,076 at time of writing.

The rise of bitcoins to over $ 40,000 increased the dominance share to 69.1%, but this did not negatively affect altcoin prices. The key driver of the day was XRP, which rose 38.59% to $ 0.35 over the past 24 hours.

The price of ETH also continued to rise, reaching a new high in 2020 at $ 1,282, with the largest altcoin rising by $ 1,400 in history.

Other notable players in the past 24 hours include Nano’s YFI and, which are up 77.33% and 20.93%, respectively.

While many analysts keep asking for an all-new daily high for bitcoin, cryptocurrency trader Scott Melker has been wary and in exclusive comments for Cointelegraph Melker said:

“Apart from the psychological level and the approximate figure, I do not consider 40,000 particularly important. Technically speaking, there is no future resistance – only blue skies, because Bitcoin determines the price of a dish. And at the end one can definitely expect a major correction, but it would be a mistake to try to set the time or assume that any number, for example 40K, will be the highest. “

Source: CoinTelegraph