August 12, 2022

Altcoins sell-off as traders jostle to hold Bitcoin price above $40K

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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.

CNBC Mad Money host Jim Cramer pointed out that the rise of cryptocurrencies comes as the price of gold continues to face pressure, indicating that the mainstream narrative regarding Bitcoin and digital assets is beginning to shift.

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.