With Bitcoin’s rise to the $40,000-mark, multiple altcoins and stocks have moved higher. This new price is an all-time high. The price increased in less than 24-hours by over $5000.
The $40,000 mark is a significant milestone for Bitcoin. According to EQUOS’s head of global sales, Matt Blom, Bitcoin’s milestone was inspired by capital from hedge funds, corporate treasuries, and public awareness on investing in cryptocurrencies. He added that this is still the early stages of adoption meaning Bitcoin’s value will still increase.
Less than a month, Bitcoin had reached the $20,000 mark, and ever since then, the price continued to rise. Since October, its value has increased fourfold.
Blom also advised investors to not focus on picking the top but should enjoy the ride while it lasts.
Once Bitcoin landed the $40,400 mark, the selling pressure was so much so that the price dipped to $36,600. However, buyers were unable to make the most out of the quick dip.
Another aspect of the cryptocurrency that has broken a new record is the 24-hour volume which has soared to an all-time high of $82.4 billion. Meanwhile, other top cryptocurrency exchanges were affected by connectivity issues and outages.
Stocks and altcoins also spike
With America’s presidential election being finalized and Democrats taking control over the presidency and houses of Congress, traditional markets are now experiencing positive trading.
Stocks of Dow Jones Industrial Average (by 0.71%), S&P500 (1.42%), and NASDAQ 100 (2.37%) have all increased. The 10-year government bond has risen steadily above the 1% mark and trading at $1.076.
While Bitcoin’s surge increased its dominance rate to 69.1% it did not decrease altcoin prices. XRP for instance traded at $0.35 at a rate of 38.59% in the past 24 hours. Ether also soared to $1,282 high contesting the largest altcoin’s $1400 all-time high. Nano and YFI also posted an exemplary performance of 77.33% and 20.93% respectively.
Scott Melker’s advice
Despite analysts encouraging Bitcoin’s new daily all-time high, Scott Melker a crypto trader calls for caution. In his statement to Cointelegraph, he claimed that the $40K mark was a “psychological level, round number, and insignificant.” He provided that with no resistance ahead for Bitcoin which is trying to discover a suitable price, it is not smart to assume that the 40K will be the highest price because a major correction will soon be conducted. And when that happens, a major crash will come along with it.