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Bitcoin Surges Above $40k as Altcoins Make Big Gains

  • Bitcoin price rises past $40,000 after weeks of downhill movement since the start of the year. 
  • The crypto market responds well to fear of incompatible monetary policies.
  • Ethereum, Solana, and other altcoins have likewise followed the uptrend, recording significant gains. 

Bitcoin Breaks 40k for the First Time in Weeks

Bitcoin has made a significant recovery to $40,000, going up at least 11% in the past 24 hours. Over the last six months, the asset experienced a massive price crash. For instance, it fell by 51% from its all-time high at $69,000 on January 22nd. However, the digital asset finally seems to have picked up some steam. 

Analysts claim that the turnaround in market sentiment may be responsible for the impulsive pump in price. Crypto traders believed the price reached rock bottom at around $33,000 in the last week of January. So, they began to bet against the downtrend. Famous institutional investor, Micro Strategy, bought $12 million worth of BTC within this period.

The digital asset is still a long way from December’s all-time high. However, crypto experts and senior traders predict a continuous surge towards somewhere between $42,000 and $43,000. Another price drop also seems unlikely from their perspective

Looking at price levels based on a weekly window reveals a breakout after an extended period of sideways movement between the $35,000 and $37,000 support range. The price slump, which coincided with a Wall Street dip, is believed to have been a reaction to the Federal Reserve’s action on labor markets. Following reports of job growth in the US and an increase in payrolls despite a pandemic, there were fears that the US Federal Reserve could tighten the labor market by raising interest rates. 

Being vulnerable to stricter monetary policies, Bitcoin took a fall as expected. However, market Analyst Edward Moya said that the price drop caused by the surprisingly high labor market strength was merely a reflex and that prices were bound to stabilize soon after.

Altcoins Follow Bitcoin Uptrend

Ethereum, among other altcoins, joined Bitcoin in the rally. ETH has made significant gains of 9% in 24 hours and traded at $2,947 at writing. However, the coin is still down by 41% compared to its all-time high in November. 

Additionally, tokens running on Ethereum’s blockchain, such as Loopring, Cardano, ChilliZ, etc., have shown 24-hour gains of 5% and above.

Solana, gaining recognition in the crypto community due to its impressive market capital performance last year, made an 11% spike in the past 24 hours. The Ethereum competitor is now two weeks strong, having recorded an 11% gain in the past week despite yesterday’s Wormhole scare.

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Other less popular assets and meme coins have also followed suit. For example, audio has matched Ethereum’s 9% rise to trade at $1.  Doge, for one, has joined Bitcoin by the increase, now worth $0.171. However, it lags behind its sibling altcoin Shiba Inu regarding 24-hour gains, which has climbed 7%. 

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