Bitcoin price plummeted below $60,000 shortly after reaching the new ATH, liquidating $1 billion.
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Bitcoin price plummeted below $60,000 shortly after reaching the new ATH, liquidating $1 billion.
Bitcoin (BTC) has fallen significantly by more than 10% since hitting an all-time high on Tuesday, March 5th. The world’s largest cryptocurrency faced significant selling pressure on cryptocurrency exchanges, preventing its price from exceeding $69,000.
The selling pressure was so great that at one point the price of Bitcoin fell below $60,000. Despite reaching $69,200 this morning, Binance’s order book showed significant sell orders at around $69,000, including over 300 BTC worth about $20 million and over 500 BTC available for sale at $70,000. As of press time, Bitcoin (BTC) is trading at $66,622, with a market capitalization of $1.31 trillion.
According to data from CoinGlass, volatile market movements have resulted in a significant wipeout of leveraged positions, resulting in the liquidation of over $1.1 billion worth of derivatives trades across all cryptocurrencies in the last 24 hours. About $870 million of the liquidated positions were long positions, representing bets on rising asset prices.
Excessive leverage cools down
Much of the recent price rise has come from optimistic speculation in the derivatives markets. Bitcoin derivatives investors have historically accessed leverage of up to 100 times the value of their holdings through instruments such as perpetual futures. At the same time, open interest in Bitcoin futures reached an all-time high of over $30 billion, reflecting heightened market activity and interest in Bitcoin trading.
On-chain data provider Santiment reported that total open interest on Bitcoin exchanges has decreased significantly following BTC’s all-time high today. In Bitcoin in particular, the notable decline in open interest signals the end of a number of excessively speculative transactions.
👍📉 Total open interest on exchanges #bitcoin, #Ethereumand #Solana decreased significantly thereafter $BTC #All Time High Early today. Many other assets not shown are seeing similar declines. Open interest is the amount of outstanding derivative contracts, mainly in futures and… pic.twitter.com/NA3wJgaj0l
— Santiment (@santimentfeed) March 6, 2024
Vetle Lunde, Principal Analyst at K33 Research, said:
“Traders must be careful about leverage in prevailing market conditions. Large price movements will eliminate overly leveraged positions before they get there.”
Bitcoin ETF inflows remain strong.
The Bitcoin ETF has continued to see strong inflows since its launch in January. Volume for all spot Bitcoin ETFs surpassed $10 billion on Tuesday, March 5, according to Bloomberg ETF strategist Eric Balchunas.
On March 5, 2024, the Spot Bitcoin ETF reached a major milestone in the United States, witnessing an unprecedented surge in inflows. US spot Bitcoin ETFs received inflows of about $662.5 million, according to preliminary data from Farside UK, one of the highest daily inflows on record.
However, the standouts were BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC, which attracted a combined inflow of more than $900 million. In particular, BlackRock’s IBIT reported impressive inflows of $788.3 million, highlighting the growing confidence of institutional investors.
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Bitcoin price plummeted below $60,000 shortly after reaching the new ATH, liquidating $1 billion.
Source: https://www.coinspeaker.com/bitcoin-price-60000-ath-1b-liquidated/
