Altcoins sell-off as traders jostle to hold Bitcoin price above $40K
Altcoin’s recent gains have come under pressure as Bitcoin (BTC) price dropped to retest lower support levels after reaching a new all-time high at $41,940.
Following Bitcoin’s Jan. 7 push above $40,000, the top cryptocurrency faced selling pressure that saw the price dip as low as $36,600. As has been the case throughout the current rally, investors quickly purchased the dip and BTC price rallied to a new all time high at $41,940 on Jan.8.
Market sentiment continues to improve as institutional investor inflow to cryptocurrencies continues to rise. As reported by Cointelegraph, Grayscale Invesetments CEO Michael Sonnenshein says that pension funds have begun to utilize the Grayscale family of funds to invest in Bitcoin.
While its difficult to ascertain how long Bitcoin price can maintain its current bullish momentum, it is clear that with each dip, institutional and retail investors are vigorously purchasing and pushing the price to new highs.
Stocks fall following uncertainty about the next round of stimulus
After setting new all-time highs on Jan. 7, the S&P 500, NASDAQ and Dow showed less strength today as it became clear that the stimulus bill many were expecting from U.S. lawmakers still faces significant roadblocks.
The major indices all fell under early selling pressure but each was able to mount a recovery to close the day in the black. The S&P 500 closed with a 0.55% gain, while the NASDAQ and DOW ended the day up 1.28% and 0.18% respectively.