Calls for bitcoin (BTC) to raise more than $ 40,000 collapsed when the higher cryptocurrency hit a wall of resistance that led to a sell-off in the opening hours.

Data from Cointelegraph Markets and TradingView show that the BTC price dropped to $ 34,368 before returning to the current price of $ 37,300.

Tensions around the $ 1.9 trillion stimulus budget announcement from the incoming Biden administration could quickly turn into buying and selling rumors at news events when questions about the possibility of a slice of the bill begin to surface.

Bitcoin’s plunge also came after renewed criticism from global regulators, when European Central Bank President Christine Lagarde recently stated that the most important cryptocurrency was “totally reprehensible money laundering activity.” This follows the announcement on January 15 that the British financial advisor has asked the UK government and parliament to ban cryptocurrency transactions.

Traditional markets are under pressure
The harsh words of government officials were not the only reason for the downturn in the cryptocurrency market, as a survey of global financial markets showed signs of increasing pressure.

The S&P 500 and NASDAQ met pressure from the opening hour and closed the day 0.72% and 0.73%, respectively. The Dow managed to ward off bears by closing the day with a 0.3% gain.

A broader survey of global markets showed that gold and silver fell 1.07% and 3.17%, while oil and US government bonds lost 2.93% and 3.59% over the 10 years.

Alternative currencies continue to rise

BTC / USD daily chart. Source: Coin360
Despite the growing selling pressure in the market, many altcoins have shown their strength. Chainlink (LINK) rose sharply overnight and is currently trading at $ 20.50, up 13.9% in 24 hours. Cosmos (ATOM) shares are up 21.62% to trade at $ 7.81.

Meanwhile, ETH has faced the same pressure as Bitcoin in general. At the time of writing, top altcoin shares are down 4.8 %% and are trading at $ 1,172.

The total cryptocurrency market capitalization is now $ 1 trillion, and Bitcoin’s dominance rate is 68%.

Source: CoinTelegraph

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