Bitcoin tops $19,400, altcoins are rising into the triple digits and the Dow has set an all-time record of 30,000.
On Tuesday, the bulls showed that they have total control of the cryptcoin market, as Bitcoin (BTC) rose to $19,418.97 and several of the top 10 altcoins rose to a double-digit level to new highs in 2020.
The day’s highlights were Stellar Lumens (XLM) and XRP with gains of 53% and 38% respectively.
With all the excitement and anticipation surrounding the possibility of BTC Profit secret hitting $20,000, crypto traders could have missed out on an equally impressive performance in the traditional markets.
On the same day, the Dow also climbed over 400 points to secure a new all-time high of 30,046. The S&P 500 and Nasdaq followed suit, up 1.6% and 1.3%.
According to market analysts, the development of three effective COVID-19 vaccines, unprecedented low interest rates as part of Federal Reserve policy, the possibility of a second round of economic stimulus and the increasing pace of power transition between the Trump Administration and President-elect Biden are giving a much-needed boost to market confidence.
As this edition closes, the S&P 500 and Nasdaq futures are also rising, suggesting that today’s rally could continue into Wednesday’s opening bell.
So far this year, the DOW has risen 6.84% and the S&P 500 10.73%. While these are good returns for any investor’s portfolio, Bitcoin has far outperformed both, with a 166.67% increase according to Skew data.
Surprisingly, Ether continues to outperform Bitcoin and during the past week, the higher-ranked altcoin entered a parabolic upswing that took the price to a high of $623 in 2020.
Typically, the price of Bitcoin and Ether (ETH) receives most of the media coverage regarding their price movement, but this week has shown that altcoins should not be overlooked.
While the two largest digital assets by market capitalisation have made a surprising upturn so far this year, data from TheTIE, a provider of social analysis data, shows that smaller capitalisation altcoins are also having a major impact.
In the last 24 hours the tweet volumes of some altcoins exploded and many made gains on their BTC, USD and USDT pairs.
After such a strong Bitcoin recovery, the digital asset may enter a short period of consolidation or even re-test the lower media. Historically, in these situations, funds flow into the altcoins and make them recover more.
If Bitcoin enters a lateral range in the next few days, investors may repeat this practice, extending the current rebound among the altcoins.