The bulls of Bitcoin have been trying very hard to maintain the price over the $40,000 mark. On the other hand, several of the altcoins sell-off owing to the profit-taking.
The recent gains of altcoins are now facing pressure due to the decline in the price of Bitcoin. The price dropped in order to retest the lower levels of support following the new record high of $41,940.
Altcoin Suffering Due To Bitcoin
Bitcoin had successfully managed to reach the brand new all-time high by breaking past $40,000 on 7th January 2021. In the meantime, the other top cryptocurrency was faced with selling pressure which ultimately led to the BTC price declining to a $36,000 low. This has happened throughout the wild rally of BTC. The investors have been rapidly buying the low BTC resulting in renewed ATH which reached $41,940 on 8th January.
The market belief continues to progress while the institutional investors flock to cryptocurrencies that continue to surge. It has been reported that Micahel Sonnenshein, CEO of Grayscale Investments, has stated that the pension funds have started to use the funds of the Grayscale family in order to invest in BTC.
Jim Cramer, the host of Mad Money of CNBC, has informed that the spike in cryptocurrencies is a result of the continual pressure faced by gold prices, indicating a shift in the mainstream narrative.
Altcoins have been facing immense selling pressure. On the other hand, Bitcoin has been trading between the ranges of $36,600 to $42,000 for the last 24 hours.
Ether is presently declined by 2.3%, trading at the level of $1,194. Similarly, DOT dropped over 6%, trading at almost $9.15 while XLM also declined 6% and trading at $0.289.
