Bitcoin price, altcoins and the Dow set record highs as bulls run the market

Bitcoin topping $19,400, altcoins rallying by triple digits and the Dow setting an all-time high at 30,000 show bulls are running all corners of every market.

On Tuesday the bulls showed that they are in full control of the crypto market as Bitcoin (BTC) rallied to $19,418.97 and several top-10 altcoins went on a double-digit rampage to new 2020 highs.

Notable performers of the day were Stellar Lumens (XLM) and XRP with a 53% and 38% gain respectively. 

Daily cryptocurrency market performance. Source: Coin360

With all the excitement and anticipation surrounding the possibility of BTC moving to $20,000, crypto traders may have missed an equally impressive performance in traditional markets.

On the same day the Dow also rallied by more than 400 points to secure a new all-time high at 30,046. The S&P 500 and Nasdaq followed suit by adding 1.6% and 1.3%.

Dow (DJI) daily chart. Source: TradingView

According to market analysts, the development of three effective COVID-19 vaccines, record low interest rates as part of Federal Reserve policy, the possibility of a second round of economic stimulus, and the increasing pace of the transition of power between the Trump Administration and President-Elect Biden are providing a much need confidence boost to the markets.

At the time of writing the S&P 500 and Nasdaq futures are also rising higher, suggesting that today’s rally could continue at the opening bell on Wednesday.

Year-to-date, the DOW is up 6.84% and the S&P 500 10.73%. While these are good returns for any investor’s portfolio, Bitcoin has far outperformed both at is currently up 166.67% according to data from Skew.

Macro assets year-to-date returns. Source: Skew

Surprisingly, Ether continues to outperform Bitcoin price and over the past week, the top-ranked altcoin entered a parabolic rally which took the price to a 2020 high at $623.

Bitcoin and Ethereum YTD performance. Source: Digital Assets Data

Typically, Bitcoin and Ether (ETH) price receive the bulk of media coverage regarding their price movement but this week has shown that altcoins should not be overlooked.

While the top two digital assets by market cap have staged and amazing rally year-to-date, data from TheTIE, a social analytics data provider, shows smaller cap altcoins are also making some serious waves.

Top trending crypto assets on Twitter (24hrs). Source: TheTie

In the past 24-hours tweet volumes for select altcoins exploded and many altcoins realized gains in their BTC, USD and USDT pairs.

After such a strong rally from Bitcoin, the digital asset may enter a brief period of consolidation or even retest lower supports.  Historically, in these situations, funds flow into altcoins and cause them to rally higher.

If Bitcoin does enter a sideways range over the coming days, investors may repeat this practice, thus extending the current rally seen among altcoins.

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