Bakkt has no plans to support XRP, says CEO

Bakkt, one of the biggest cryptocurrency companies in the United States, will not support XRP as part of its further product development, according to the CEO.

On Jan. 11, Bakkt CEO Gavin Michael sat down with the Axios Re:Cap podcast to discuss the mainstream adoption of Bitcoin (BTC) and other digital assets. Michael said that Bakkt is planning to roll out support for a number of altcoins on its platform in the future, but XRP is not one of them.

Michael declined to comment on whether the company decided to stay away from XRP due to Ripple’s legal issues sparked by a lawsuit from the U.S. Securities and Exchange Commission. “Just not on our platform,” Michael stated, adding:

“We entered the crypto space through Bitcoin, and that was our first currency we’ve made available. We have others that are scheduled to come on board as part of the product development. But XRP is not available.”

Michael’s remarks on XRP follow the official announcement of Bakkt’s plans to go public. On Jan. 11, the Intercontinental Exchange, the operator of the New York Stock Exchange and the owner of Bakkt, announced a merger deal with VPC Impact Acquisition Holdings to allow Bakkt to launch on stock markets. 

Meanwhile, Ripple is fighting the SEC’s $1.3 billion lawsuit brought against the firm in late December. On Jan. 8, Ripple CEO Brad Garlinghouse strongly denied the “SEC’s unproven allegations” and claimed his firm is “on the right side of the facts and of history.”

In the midst of Ripple’s legal problems, many crypto companies have decided to delist XRP. On Jan. 6, crypto wallet provider and trading platform announced it was removing XRP, following in the steps of Coinbase, Binance.US, OKCoin and others. However, some companies like Uphold preferred to keep XRP on their platforms until the SEC lawsuit is resolved.

Bitcoin’s short-term price trajectory could be bleak, says Celsius CEO

Healthy price corrections are generally part of market bull runs. With one such drop currently underway, Celsius’ CEO Alex Mashinsky thinks $16,000 could be in the cards. 

“I have been predicting that Bitcoin and many altcoins will hit new all-time highs during 2021 and beyond,” Mashinsky told Cointelegraph. “Still, we will see several corrections, like what is going on today, that will allow savvy investors to accumulate these assets at a discount.”

After Bitcoin broke its 2017 record high in December 2020, the asset continued upward in parabolic fashion, finding itself worth more than double its one-time high of $19,892 less than two months later.

Bitcoin nearly reached $42,000 on Jan. 8 before beginning its recent descent, holding a value near $32,700 at time of publication. From its all-time high near $42,000, down to its recent low, Bitcoin has already corrected approximately 28% in price.

Mashinsky said:

“I see Bitcoin prices plunging even further than 25%. Sooner or later, the bears will accumulate enough pressure to see a correction. Overall I see the potential for bitcoin prices to fall all the way back to $16,000 before the end of the first quarter.”

Bitcoin’s price has soared with lightning-like velocity in recent weeks. Although bull markets often include price pullbacks, what are some signs that might occur when this price correction is over? “Regardless of this drop and many more to come, we will continue saying the same thing since 2017,” Mashinsky said, adding:

“There is nothing better than HODLing your BTC and earning yield on it because very few investments delivered the returns of Bitcoin over 1,3 & 5 years. This process will flush the weak hands and transfer the baton with all their BTC from the short-term speculators to the long-term institutions and HODLers.”

Bitcoin’s bull run also comes in line with a number of other economic factors, including money printing and possible inflation.

Bitcoin whales are profiting as ‘weak hands’ sell BTC throughout $40K bull run

Bitcoin (BTC) is changing hands fast after its drop to $32,000 and only millionaires are winning, data shows.

Statistics governing wallet balances from Glassnode on Jan. 11 reveal that the main investors “buying the dip” are those with a balance in excess of 1,000 BTC ($36 million).

“Millionaire” wallets keep growing

Compiled by Elias Simos, protocol specialist at blockchain infrastructure provider Bison Trails, the numbers suggest that the wealthy have been profiting from Bitcoin being sold by smaller investors throughout December and January.

“Addresses with more than 1k $BTC continue growing at the expense of all others–even as this most recent downturn is taking effect,” Simos summarized.

“While you were selling, whales were gobbling up your Bitcoin…”

While the number of wallets with smaller balances decreased as BTC/USD climbed from $19,000 on Dec. 1 to recent highs of $42,000, the 1,000 BTC+ group became an outlier, growing in presence.

The net effect is thus weak hands selling to strong — and the richer the entity, the stronger the hands.

“Don’t be part of the #BTC transfer to billionaires, corporations and hedge funds …. at least not yet,” entrepreneur Alistair Milne warned Twitter followers while responding to Simos’ findings.

Bitcoin entities with a balance of more than 1,000 BTC chart. Source: Glassnode

Guggenheim hints it will sell BT

While institutional buy-ins have become the standard narrative of Bitcoin over the past few months, a rogue “weak hands” signal from one of them caught analysts’ attention this week.

As Cointelegraph reported, Guggenheim Partners, which announced a sizable fund allocation to BTC in late November, is allegedly planning to sell some of its holdings already. The trigger came from CIO Scott Minerd, who on Monday said that Bitcoin’s weekend drop provides the impetus to rethink its position.

“Bitcoin’s parabolic rise is unsustainable in the near term. Vulnerable to a setback,” he wrote.

“The target technical upside of $35,000 has been exceeded. Time to take some money off the table.”

His suggestion appeared to confuse market participants, with responses querying the rationale behind the decision, coming just weeks after Guggenheim’s initial entry.

“CIO of huge firm day trading btc? It’s a 5-10yr hold minimum,” macro investor Dan Tapeiro argued.

Institutional uptake comes amid a more fundamental supply and demand squeeze for Bitcoin, with large buyers already outpacing what miners can produce each month. At the same time, miners have stepped up their sales in recent days, in what one theory suggests is some well-earned profit-taking at or near all-time highs.

‘Wen $DIGG?’ Badger DAO preps for hotly anticipated synthetic BTC launch

The launch of Badger DAO’s DIGG, a synthetic rebasing asset meant to track the price of Bitcoin, is one of the most eagerly anticipated product releases in recent DeFi memory — but the person most excited to see DIGG hit the market might not be a trader, but instead Badger DAO founder Chris Spadafora himself. 

According to community-minded Spadafora — who would be quick to note that he doesn’t care for the “founder” label despite its technical truth — anticipation for the launch has led to more than one ‘badgering’ inquiry directed at him on Twitter.

“You’ve probably seen it… ‘When $DIGG, when $DIGG’ — it’s constant,” Spadafora sighed.

For all the excitement, however, the exact date of the launch is still unknown. In an interview with Cointelegraph Tuesday, Jan. 5, Spadafora said DIGG was set for release “within a few days.” However, on a Friday community call, he pushed that timeline back, saying users could expect DIGG “sometime next week” — a series of delays that have only stoked the Twitter crowd’s passions.

Still, Spadafora has largely remained good-humored about the ‘badgering’, as he knows that it’s rooted in an eager community ready to play the latest algorithmic asset game

He’s also excited about the launch for another reason, however: he believes that when all of the forthcoming stabilization mechanisms are ready, DIGG could become more than just another spin at the rebase casino, and it might even evolve into a true synthetic Bitcoin asset.

Keeping a proper peg

It’s a difficult goal to reach. So far, algorithmic assets such as algorithmic stablecoins have proven to be great ways for savvy game theoreticians to enrich themselves, but inefficient when it comes to keeping their intended pegs. 

To this end, Spadafora and the rest of the team have taken inspiration from previous rebasing experiments such as Ampleforth.

“We think the secret sauce is learning from what AMPL did around liquidity, and then adding the automated vaults on top,” said Spadafora.

Ampleforth’s model is a time-tested one (at least by DeFi standards) which has undergone over 600 rebases to date. Its success was markedly accelerated once they developed the “Geyser” in which users could deposit their AMPL to a liquidity pool in order to earn additional token yield.

The addition of vaults on top of that is a novel move, however, which may yield benefits for the stability of the peg as well as users.

“What we want to do with our vault system is really at large-scale be the… let’s call it the ‘buy-and-sell’ dictators. So through automated strategies we’re able to buy when the time is right and sell when the time is right to optimize return for the users.”

Effectively, a DIGG vault would automatically and programmatically play the tokeneconomic ‘games’ other algorithmic asset projects expect users to play with bonds or coupons. Currently Badger’s vaults are worth $700 million — a massive pool of automated yield-generating liquidity that could be brought to bear to keep DIGG’s price tied to BTC.

Spadafora told Cointelegraph that the DIGG vaults and their strategies would ideally launch “a few weeks” after the DIGG token launch, and that additional stabilization measures, such as vault rewards that fluctuate depending on how close DIGG is to the peg, are also in the works.

In the end, however, the best resource Badger DAO might bring to the stabilization effort is the community itself. Spadafora said that the DAO will have the power to tweak mechanics such as rebase time, or to even develop an entirely different model for the token if the plans the team brings to the table aren’t working. Such community-run operational efforts have proved successful with projects like Synthetix. 

“We are putting all paratmeters of DIGG and control of DIGG into the hands of the BADGER token holders. So any and all parameters — you want to switch to a different model, you want to change the rebase time, you want to do anything associated with that — that’s in control of the community to decide.” 

High supply?

Still, even if DIGG manages to properly track the price of Bitcoin, it’s an open question as to how much market appetite there is for more Bitcoin on Ethereum. BTC on ETH has topped out in recent weeks, stalling below 150,000 total BTC after a parabolic advance throughout most of 2020.

The DIGG launch is expected to bring an eventual total of 4000 BTC to the market, though according to Spadafora only 15% of the supply will be available on day 1 — roughly 580 tokens. Half will be allocated to the Badger treasury, and another 30% will come onto the market in a liquidity mining event over a multi-week period. But does anyone even want another source of Bitcoin on Ethereum?

Spadafora thinks so. He thinks of Bitcoin as “the ultimate collateral,” and says that one long-term goal is for Badger to ‘flip the stack’ — instead of Badger being the end-point in a cycle of smart contract transactions (wrap BTC, pool WBTC with Ethereum, deposit pool tokens into Badger for yield), it would become more of a base layer.

“When groups like us are able to say, “Oh, you can unlock this illiquid position, and borrow against it so you can go and take additional strategies, lever up and buy more Bitcoin, provide that stablecoin as liquidity somewhere, or just re-invest that into our vaults and increase your APY in the Badger App, that’s where it gets interesting.”

“Once those things start opening up, I can see a lot more people wanting to bring more tokenized Bitcoin to Ethereum because they will have more use.”

One way they will accomplish this will be by allowing users to borrow assets against staked liquidity pool and vault positions — likely a with a stablecoin called $CLAW.

As a result, already a few clever Badger DAO fans are looking past DIGG and to the potential of taking out stablecoins against their position locked DIGG vaults. The question for them, now, is “Wen CLAW?”

Long term security 

Bringing all these new products to the DeFi ecosystem is a developmental load, but Spadafora says that the responsibility of nearly a billion dollars in total value locked is what weighs on him more than the exhaustion. 

“This last five weeks have probably been the most stressful five weeks of my life,” he admitted.

After all, it’s difficult to sleep when “you don’t know what you don’t know” and you’re building a wildly successful project in a space rife with hacks, exploits, and vulnerabilities. Additionally, complexity inherent in Badger’s interacting systems — farms, vaults, a rebasing token, liquidity pools, etc — provide layers upon layers of smart contract risk.

To that end, the Badger DAO team is leading the way with a variety of security processes that Spadafora thinks will become the standard.

First, Spadafora says that the team conducted what he calls a “non-smart contract security audit.” This includes internal policies regarding how developers handle updates, make changes to the web app user interface, and mitigate things like spear phishing attacks — but the most important development coming is the “Badger War Room.”

Many of the recent exploits over the past few months have seen the same half dozen to a dozen white hat hackers convene to try and replicate, then mitigate, recent contract exploits. The “War Room” aims to have that ad-hoc group in place from the start, featuring a contract management and contract repository system making it easier to untangle possible exploits.

Additionally, Spadafora says the team has onboarded all War Room participants to Badger’s systems, pre-built a test environment, and established multiple communication channels and a schedule for who would be awake and available to respond to an attack.

It’s a system designed with the reality in mind that it’s impossible to predict where the next exploit might come from, but constructed to better analyze and potentially reduce the harm such an exploit might cause.

Considering the project has been live for barely more than a month, the progress is remarkable. In the end, though, Spadafora hopes it all might help create a new, sustainable niche in DeFi:

“I think it will change the way people think about algorithmic stablecoins.” 

THORChain (RUNE) rallies 35% as the entire DeFi sector turns bullish

In the past week, a large number of altcoins have broken from their sideways ranges to post double-digit gains and it appears that investors are interpreting the current trend as a new ‘altcoin season’. 

As historical data shows, these altcoin breakouts typically occur after Bitcoin (BTC) enters a consolidation phase after a sharp rally similar to the one the maket has witnessed over the past three weeks.

For many of the recent top movers, technical analysis traders are simply capitalizing on tokens that show bullish market structure or are on the verge of a breakout due to increased volumes, but there are also coins that are moving higher based off a number of fundamental factors.

THORChain (RUNE) is one of the tokens which is being driven by more than investor FOMO and the digital asset was also one of the top moving altcoins in 2020.

Strong fundamentals back RUNE’s performance

The THORChain project was founded in 2018 and aimied to build an independent blockchain that could facilitate cross-chain transfers. The project currently focuses exclusively on Binance Chain BEP2 tokens, which somewhat contradicts its chain agnostic aspirations but there is the possibilty that additional chains could be added in the future.

Currently, THORChain’s native RUNE token is given to traders that provide liquidity to the platform and holders can also benefit from the staking pool. The liquidity pools are incentivized and managed similarly to Uniswap, although they are 50% composed of RUNE tokens.

RUNE/USDT price chart. Source: TradingView

In the past two weeks RUNE token rallied by 95% and while there is not a timeline set for the mainnet launch, it’s expected to be based on the Cosmos blockchain.

Since Aug. 2020, the BEPSwap DEX has been running on a beta version and the team issues regular detailed weekly reports on how the THORchain ecosystem development is progressing.

On Dec. 1, the THORchain’s official Twitter account announced that Bitcoin cross-chain integration had been completed and successfully tested. The team also hinted that cross-chain integration with Ethereum would be the project’s next goal.

Another recent positive development came on Dec. 31 when Haven Protocol tweeted that their integration with THORchain would be completed within three months. The post also stated that staking would be possible by adding HXV and xUSD to Haven Protocol’s liquidity pools.

A few hurdles lie ahead

In the past week, THORChain reached a new milestone as the platform processed 10 million transactions in 3 months but a number of analysts have severely criticized the project for the relatively small number of nodes.

According to data from Delphi Digital, there are currently 67 nodes and these are mainly run by AWS or Digital Ocean. This issue can be partially explained by the large amount of RUNE required to be staked in order to become a validator.

RUNE Twitter users activity vs. USD price. Source: TheTie

Data from TheTie also shows that price spikes have been accompanied by increases and decreases in social network activity. This effect corresponds with development activity and partnership announcements, as that news tends to be shared and positively commented on by its growing community.

Currenlty the project is held in high regard by it’s community and altcoin investors but it’s future success may hinge on the team’s ability to deliver its promises.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Traders flock into altcoins as Bitcoin price trades sideways

The bullish momentum seen throughout the week has spilled over into the weekend as the majority of the top-100 tokens listed on CoinMarketCap are posting double-digit gains. 

Bitcoin (BTC) entering a brief consolidation period and the possibility of a third round of stimulus checks for American citizens are two possible reasons for today’s bullish price action.

Daily cryptocurrency market performance. Source: Coin360

While there are concerns about the recent large Bitcoin inflows into South Korean exchanges by BTC whales, fundamentals factors like miner sentiment and decreasing supply are keeping investors feeling relatively optimistic about Bitcoin’s future price prospects.

A growing number of experts have voiced their opinion that Bitcoin’s recent bullish surge is due to outflow from gold as the top cryptocurrency is quickly becoming the preferred inflation hedge for the millennial generation.

Bitcoin finds a new range in uncharted territory

Following the new all-time high price in Bitcoin (BTC) of $41,940 on Jan 8, the top cryptocurrency has entered what looks to be a brief consolidation phase as bulls attempt to push the price higher after confirming the $40,000 level as support.

BTC/USDT 4-hour chart. Source:

At the time of writing, BTC is up 1.53% on the day and trading at $40,690 as the 24-hour trading volume has seen a 26% decrease from the record high’s set on Jan 8.

Predicting what comes next is a difficult task at these price levels due to the absence of a price ceiling. In regards to price volatility, Chad Steinglass, the head of trading at CrossTower suggested that increased volatility could be the norm until the market moves “into a more stable environment of balanced flows and more stable prices.”

In private comments to Cointelegraph, Steinglass said:

“I think we’re entering a stage in the markets where $1,000 intraday swings are pretty much going to be normal… Market maker liquidity relative to big player size is getting smaller and smaller. With market makers having reduced capacity to warehouse risk relative to trading flow, I expect prices to move pretty quickly.”

Has a new altcoin season started?

As has been the case in previous bull markets, a rise in the price of Bitcoin is often followed by a consolidation phase. During this time, traders tend to shift their attention toward altcoins and Bitcoin profits shift into smaller cap cryptocurrencies.

According to Jean Baptiste Pavageau, a partner at ExoAlpha, the current bullish momentum seen from Bitcoin will eventually slow down and at this juncture investors are likely to pile into altcoins. Pavaageau told Cointelegraph:

“Indeed, we have started to observe a classic “wealth” distribution pattern over the past 2 weeks, where Bitcoin investors are looking to take their profit and invest in other blue-chip coins. While the upside on Bitcoin is decreasing, the altcoin market is becoming more appealing for traders and investors who are looking for large returns. We expect to see Bitcoin dominance starting to decrease and the altcoin market booming over the next few weeks.”

BTC/USD daily chart. Source: Coin360

Ether (ETH) price continues to surge to new yearly highs as the price rallied 4.2% to $1,267. Meanwhile, Bitcoin Cash (BCH) and Bitcoin SV (BSV) are up 23.6% and 61% respectively.

Coming off a week filled with positive developments for stablecoin projects, MakerDAO and its MKR token, which govern the development of the DAI stablecoin, has seen an increase of 45% over the past 24-hours and currently trades for $1,530.

The overall cryptocurrency market cap now stands at $1.1 trillion and Bitcoin’s dominance rate is 69%.

Bitcoin price volatility spikes as BTC whales sell each new high

Bitcoin price has re-established the $40,000 level as support but as bull push toward a new all-time high the possibility of another sharp sell-off looms.

According to analysts at Material Indicators, a crypto analytics company, mega-whales sold off steeply when Bitcoin hit $40,000 on Jan. 7. This led to a quick 10% drop to the $36,000 area over the next few hours.

The dip was quickly bought up, eventually pushing the price above $41,000 in the next 12 hours. However, BTC saw another large drop after setting another all-time high at $42,000, and at the time of writing the top-ranked digital asset is trading at $40,800. According to Material Indicators:

“So, it looks like mega-whales started selling after that dump at around 2am UTC, and continued selling on the spikes. My guess is they expected more downside. They did not really participate in the rally back up to 42k, which would further support that point.”

In the most recent pullback from $42,000 to $40,000, analysts from Material Indicators explained that smaller whales, who hold $100,000 to $1 million, began to take profit. They noted:

“However, now, they have started buying again. Presumably to break the 42k resistance. Only this time, it seems to be the normal whales ($100k – $1M class) who started taking profit.”

Bitcoin heatmap. Source: Material Indicators

Considering that at times during the last week Bitcoin price has traded higher on Coinbase, it is clear that there is large buyer demand coming from the U.S.

This suggests that there is a battle between normal whales taking profit and new buyers in the U.S. market. The sharp rejections from each new all-time high also signals that whales may be aggressively taking profit as soon as Bitcoin hits a new record high

As such, it is important that the demand for Bitcoin from the U.S. is sustained in the near term. Otherwise, the high level of selling pressure from whales could cause BTC to see a correction in the foreseeable future.

Where could Bitcoin go from here?

Bitcoin currently has extremely strong technical momentum that continues to drive the price higher. For this reason, traders are reluctant to short it, but some have started to take profits.

In the short term, one concern for Bitcoin is the potential recovery of the U.S. dollar. A pseudonymous trader known as “Cantering Clark” pinpointed the rebound of the U.S. dollar and the decline of precious metals. He said:

“So the question is, with the $DXY finding a floor surprisingly, and metals responding by getting nuked, does $BTC hold well?”

The U.S. dollar index (DXY) is hovering at a support level on the monthly chart. Alternative stores of value, like Bitcoin and gold, are priced against the dollar. Hence, if the dollar begins to move upward, the risk of a BTC correction could intensify.

Morgan Stanley now holds 10% stake in Michael Saylor’s MicroStrategy

Per a filing with the Securities and Exchange Commission released on Jan. 8, investment bank Morgan Stanley had acquired 792,627 shares in business intelligence firm MicroStrategy. The investment represents a 10.9% stake in a firm that has made massive investments in Bitcoin over the past several months. 

The purchase apparently happened on Dec. 31. MicroStrategy has had a colossal month, seeing its shares move from $289 on Dec. 8 to $545 as of Jan. 8. 

Source: NASDAQ

In August, MicroStrategy took bold steps into crypto, making Bitcoin its primary reserve asset. At the time, CEO Michael Saylor said of the firm’s choice:

“This is not a speculation, nor a hedge. It is a deliberate corporate strategy to adopt the Bitcoin Standard.”

Just weeks ago, MicroStrategy announced a $400 million securities offering with the stated purpose of raising funds to buy more Bitcoin. As of Dec. 21, the firm had stockpiled 70,470 Bitcoin. 

At prices as of publication time, MicroStrategy’s BTC stockpile was worth over $2.8 billion. 

Institutional investors like Morgan Stanley have warmed up to crypto assets considerably over the past year. Many have attributed Bitcoin’s recent bull market to this institutional uptick, as compared to the retail FOMO that was so critical to BTC’s 2017 highs, which subsequently fell apart. 

Bitcoin price quickly rebounds to reach $41,000 as market cap passes Tencent

Bitcoin (BTC) returned to $40,000 on Jan. 8 as another price consolidation period ended characteristically briefly.

Cryptocurrency market overview. Source: Coin360

Data from Cointelegraph Markets, Coin360 and TradingView showed BTC/USD quickly rise to recapture the psycholigically significant price level during trading on Friday.

After a 9% fall following runs to all-time highs the day before, Bitcoin managed to stay lower only for a matter of hours before bullish momentum returned. Thereafter, the largest cryptocurrency not only matched its all-time highs, but delivered a new one — $40,087.

BTC/USD 1-minute candle chart (Bitstamp). Source: TradingView

“Seems we only dump to shake out the weak hands these days,” a popular social media trader summarized on the day.

Big player market caps topple to BTC

Bitcoin also beat the market cap of Chinese giant Tencent and briefly passed “darling” tech firm Tesla as it rose to $41,000 per coin.

Data from CoinMarketCap and Companies Market Cap confirmed that on Jan. 7 Bitcoin almost entered the top five companies by market cap. 

Top companies by market cap as of Jan. 8, 2021. Source: Companies Market Cap.

As BTC/USD crossed the $40,000 mark, Bitcoin’s market cap grew to unprecedented levels, topping out at $745 billion. A day later, following a correction, the figure retreated to $737 billion before regaining its earlier record.

At the same time, Tesla delivered a swift 7.3% daily gain, allowing it to outpace Bitcoin once again after losing its market cap prowess to the cryptocurrency for a short period. On Friday, the company was on $773 billion as Bitcoin once again sailed through $40,000.

Tencent stock (orange) vs. BTC/USD chart. Source: TradingView

A more decisive victory came over Chinese tech giant Tencent, however, which at $716 billion firmly bowed to Bitcoin’s momentum. Previously, Tencent was also worth more than Tesla.

As Cointelegraph reported, Tesla had likewise outperformed against stocks and cryptocurrency in 2020, beating even Bitcoin’s performance versus its March lows. A look at Tencent stock growth meanwhile underscores the slow pace of gains which characterized other stocks compared to cryptocurrency.

“There are still companies in the world that are worth more than #Bitcoin. Crazy,” Tyler Winklevoss, co-founder of Gemini exchange, commented on the phenomenon.

Altcoins and stocks move higher after Bitcoin price rally to $40,000

The price of Bitcoin (BTC) hit a new all-time high above $40,000 on Jan. 7 after the price increased by more than $5,000 in less than 24-hours.

BTC/USDT 4-hour chart. Source:

The $40,000 barrier marks a significant milestone for the top-ranked cryptocurrency. According to Matt Blom, head of global sales trading at EQUOS:

“Bitcoin’s march to $40k has been driven by fresh capital from huge hedge funds, corporate treasuries and awareness from the investing public that all is not well in the world of fiat. It’s easy to forget that we are still in the very early stages of adoption.”

Blom added that instead of trying to “pick the top,” investors should just “enjoy the ride.”

Shortly after Bitcoin surpassed $40,400, it ran into significant selling pressure that saw its price dip back as low as $36,600 before buyers came back in to take advantage of the quick dip in price.

Bitcoin’s 24-hour volume has reached a new all-time high of $82.4 billion, and a number of top cryptocurrency exchanges experienced outages and connectivity issues.

Stocks and altcoins move higher

Traditional markets also saw positive trading as the results of the United States presidential election now appear to be finalized with Democrats controlling the presidency and both houses of Congress.

The S&P 500, Dow Jones Industrial Average and NASDAQ 100 are all higher on the day, up 1.42%, 0.71% and 2.37%, respectively. The 10-year government bond has also firmly risen back above the 1% mark, trading at $1.076 at the time of writing.

Bitcoin’s surge above $40,000 increased its dominance rate to 69.1%, but this did not negatively impact altcoin prices. Notable movers of the day included XRP, which has rallied 38.59% to $0.35 over the past 24 hours.

XRP/USDT 4-hour chart. Source:

Ether (ETH) price also continued to soar higher, setting a new 2020 high at $1,282 as the largest altcoin pursues its $1,400 all-time high.

Other notable performers over the past 24-hours include Nano and’s YFI, which have seen increases of 77.33% and 20.93%, respectively.

While many analysts continue to call for new daily all-time highs from Bitcoin, crypto trader Scott Melker advised caution, and in private comments to Cointelegraph Melker said:

“Beyond being a psychological level and a round number, I don’t view 40K as particularly significant. From a technical perspective, there is no resistance ahead – just blue skies because Bitcoin is in parabolic price discovery. The expectation would certainly be that a major correction will eventually come, but it is a fool’s errand to try to time it or to assume that an arbitrary number like 40K will be the top.”

Bitcoin price now within 10% of $40,000 after ranging flips to new highs

Bitcoin (BTC) climbed to fresh all-time highs on Jan. 7, coming within striking distance of $40,000.

Cryptocurrency market overview. Source: Coin360

BTC price reaches $37,800

Data from Cointelegraph Markets, Coin360 and TradingView showed Bitcoin getting yet another boost overnight on Wednesday as protestors stormed the Capitol in Washington D.C.

After showing signs of continuing strength during trading the day before, BTC/USD abruptly headed north, reaching a new peak of $37,800.

By press time on Thursday, a subsequent retracement had sent the pair focus on the $37,000 mark, with Bitcoin still within 10% of hitting $40,000.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

According to the latest updates for order books, significant resistance lay in wait at $38,000, with more selling pressure beginning at $39,500. Support was less decisive above $31,000.

BTC/USDT order heatmap (Binance). Source: Material Indicators

“It’s amazing, an amazing year,” Cointelegraph Markets analyst Michaël van de Poppe summarized in his latest YouTube update.

He added that while the current price action was something to be celebrated, a “healthy correction” was now getting more likely.

“Would that be bad? No, as the higher Bitcoin goes, the more money is into the markets and the more money can flow towards the altcoins from this perspective,” he continued.

Altcoins still steal the show

As Cointelegraph reported, the end of December was characterized by more funds entering long-term storage, with the remaining available supply subject to what Van de Poppe and others term “FOMOing in” from less experienced buyers.

These felt that they should seize the opportunity and buy Bitcoin at higher levels, having had no interest in doing so while Bitcoin traded at $10,000, he noted.

Across major altcoins, Ether (ETH) was up 2.3% on the day, hitting $1,180, while embattled XRP put in a surprise move to add 27%.

Stellar (XLM) meanwhile continued its march upwards, hitting $0.34 on the back of weekly returns that topped 170%.

Bitcoin’s market cap dominance stood at 68.5% on Thursday, down from 69.7% at the start of the week.

Dip-buying bulls push Bitcoin price to a new all-time high at $36,574

Bitcoin’s (BTC) parabolic rally intensified on Wednesday as the price broke above $36,000 for the first time, sending a strong signal that the bull market still has further room to grow.

The flagship cryptocurrency peaked at $36,574.47 on Bitstamp, easily surpassing its previous all-time high. The price has gained 8% on the day and more than 25% over the past week.

At press time, Bitcoin was trading at $36,367.

BTC/USD daily chart. Source: TradingView

At the current value, Bitcoin’s market capitalization has grown to $669.2 billion, accounting for roughly 68.3% of the overall cryptocurrency market.

Bitcoin’s latest breakout defies warnings that the market could be facing overbought resistance in the near future. An overheated futures market and large liquidations from some of Asia’s largest holders raised the possibility of a short-term pullback.

So far, Bitcoin’s digital-gold narrative appears to have squashed any semblance of a major pullback as institutions and retail traders buy the dips. As Cointelegraph recently reported, Bitcoin is experiencing a supply shortage as major buyers like Grayscale and PayPal continue to scoop up all of the newly mined BTC.

Bitcoin continues to exert a strong gravitational pull on the broader market, with major altcoins also printing new local highs. Ether (ETH) briefly surpassed $1,200 on Wednesday. Litecoin (LTC), XRP, Bitcoin Cash (BCH) and others also saw significant gains.