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Bitcoin The decline widened on Tuesday, dropping more than $10,000 from last week’s all-time high.
The flagship cryptocurrency was last down 6.5% at $62,749.99, according to Coin Metrics. Last week, it rose to an all-time high of $73,679.
“If ETFs continue to buy up the supply of Bitcoin available on the open market and reduce liquidity, these events could become more frequent and cause people to lose confidence in the integrity of Bitcoin pricing. , they may start looking at other crypto assets,” said Bartosz Lipionski, CEO of Cube.Exchange.
This move contributed to the decline in other cryptocurrencies. ether has fallen more than 5% and was most recently trading at $3,287.58 after topping $4,000 last week for the first time since December 2021, although some analysts had predicted a decline following the network’s Dencun upgrade.Associated token Solana down 8%, dogecoin lost 7%, XRP It fell by 2%.
Bitcoin agency for virtual currency related stocks micro strategy Cryptocurrency exchanges fell 15% coinbase It fell 8%. Mining stocks, including the largest ones, fell across the board. riot platform and marathon digitaldecreased by 7% and 8%, respectively.
Bitcoin falls below $63,000
“Overall, it would make sense for this pullback to be short-lived and the rally resume.However, the prospect of next year’s recession looms over the market, tempering the rally in a way we cannot foresee. “It’s possible,” Lipionski said.
Bitcoin’s decline began last week as traders began taking profits after it soared about 70% from the start of the year to last Wednesday’s all-time high. According to data from CryptoQuant, there was a significant spike in investors selling Bitcoin for a profit on March 12th.
Furthermore, that profit taking led to a surge in long-term liquidations of leveraged Bitcoin positions. According to Coinglass, approximately $122 million in long-term liquidations occurred across centralized exchanges on Monday. Last week, about $372 million was generated in extended liquidations from Wednesday to Friday.
The successful introduction of a spot Bitcoin exchange-traded fund in the US earlier this year has been a major factor in Bitcoin’s rally, which began even before the ETF was launched in anticipation of regulatory approval. At the same time, increased interest and demand for Bitcoin from investors has also led to increased leverage and increased Bitcoin value. high frequency Volatility.
Investors and analysts say traders should pay attention in March as increased volatility coupled with increased trading volume could lead to a pullback from Bitcoin’s long-term uptrend. It warns that.
Chart watchers primarily say that Bitcoin is on a path to new highs, but could see a sharp correction along the way.