- Bitcoin crash led to more than $1 billion in total liquidations.
- Industry experts believe this pullback is healthy and might be a precursor to further price growth.
The crypto market experienced a dramatic Tuesday as Bitcoin’s price dipped to $61,000, triggering a cascade of over $1 billion in liquidations. This huge sell-off, marked by data from CoinGlass, saw $876 million in long trades and $292 million in shorts liquidated over 24 hours.
Bitcoin Liquidation Frenzy
The sharp decline happened shortly after Bitcoin reclaimed its all-time high, surging to $69,200 before succumbing to selling pressure. Over 313,000 traders were liquidated as a result of the market volatility, highlighting the extent of the sell-off. The largest single liquidation event was recorded on a LINK/USD trade on Bitmex, amounting to a staggering $11 million.
Amid the market volatility, notable figures within the crypto space have offered their perspectives. Vijay Boyapati, renowned for his insights on Bitcoin and author of “The Bullish Case for Bitcoin,” characterized the pullback as a healthy and anticipated correction following historic highs. Boyapati emphasized the importance of breaking through psychological barriers, suggesting that genuine price discovery would follow in the aftermath of such moments.
On the other hand, Ash Crypto, a prominent crypto trader, pointed out the rapid resurgence of Bitcoin’s price, noting a $7,000 surge from $59,000 to $66,000 in less than 24 hours.
BITCOIN IS BACK ABOVE $66,000
BTC PUMPED $7,000 FROM $59k TO
$66k IN LESS THAN 24HRS. pic.twitter.com/qmZcY45aIU— Ash Crypto (@Ashcryptoreal) March 6, 2024
As of the time of writing, Bitcoin is trading at $66,988, with a modest 0.14% increase over the past 24 hours. The trading volume stands at $101.6 billion, contributing to a market cap of $1.3 trillion.
The recent surge in Bitcoin’s price has been attributed to the increasing adoption of Exchange-Traded Funds (ETFs), providing both institutional and retail investors with exposure to the crypto market. February witnessed record-breaking ETF inflows, contributing to Bitcoin’s remarkable growth trajectory.
As Crypto News Flash has earlier detailed, El Salvador’s President, Nayib Bukele, has highlighted the possibility of a 40% return from Bitcoin investments, notably through the country’s citizenship program. Despite market swings, Bukele reaffirmed the country’s commitment to keeping its Bitcoin reserves, adhering to the idea of “1 BTC = 1 BTC.”
Echoing earlier coverage by Crypto News Flash, market observers are closely monitoring key events such as Federal Reserve Chair Jerome Powell’s testimony to Congress and the release of US nonfarm payroll data. These events could provide insights into economic health and influence market sentiment for Bitcoin moving forward.
JPMorgan’s Projection and Insights on Bitcoin Halving
However, amidst the bullish sentiment, JPMorgan anticipates a potential slowdown in Bitcoin’s rally following the halving hype, with projections suggesting a decline to $42,000. This event, reducing miner profitability by half, could impact the survival of mining operations, favoring those with lower production costs and more efficient rigs. Larger publicly listed Bitcoin miners may gain market share post-halving, as observed in previous cycles.
Overall, while Bitcoin’s recent volatility may concern some investors, it also highlights the transformative nature of the crypto market. Investors must, therefore, remain vigilant and adaptable in navigating the crypto space.
