Bitcoin Bounces Back After Swift Retreat from Record Highs

Bitcoin, swiftly recovering after a rapid decline from its record high of $69,000 as it entered the U.S. trading hours, is once again on an upward trajectory, showcasing the cryptocurrency’s resilience.

After testing the $69,000 peak, Bitcoin experienced rapid sell-offs, plummeting to $59,000 within hours, shedding $10,000 in value. Buyers swiftly evaluated Bitcoin’s sub-$60,000 price, reversing the direction of the cryptocurrency, and it closed the day at the $63,400 range. In the new day, buying activity continues, with Bitcoin trading at $66,700 in the final hour.

The sudden drops in Bitcoin are reportedly attributed to increased miner sell-offs. The significant amount of BTC transferred to Coinbase before the peak movement and subsequent large-scale sales had drawn attention. Meanwhile, futures open positions, which reached record levels in Bitcoin, significantly decreased after the decline, resulting in liquidations amounting to $150 million, according to recent data.

Optimism prevails in the world of Bitcoin, with the cryptocurrency setting a new record of up to $69,200 on some crypto platforms. This surge represents a remarkable 63% increase in value for Bitcoin in the first quarter of 2024. The primary catalyst for this rise is linked to ongoing spot ETF trading in the U.S., coupled with expectations of a global interest rate reduction this year, seen as a factor boosting risk appetite. Additionally, the Bitcoin halving event, especially in this period of high demand, serves as an additional trigger.

However, the recent 24-hour price movement in Bitcoin has raised concerns among some investors. The notion that Bitcoin, which has been predominantly influenced by institutional demand, would experience reduced volatility was invalidated with a 15% decline within hours yesterday. While overall optimism for the leading cryptocurrency persists, the rapid retreat from yesterday serves as a reminder for investors to exercise caution.

Ethereum Swiftly Recovers Losses

The volatility that began towards the evening hours had a substantial impact on the rest of the market. Ethereum, reaching $3,800 before the swift retreat, dropped to $3,200 during the mass sell-offs. Nevertheless, the recovery in the leading altcoin happened swiftly, with ETH currently regaining its losses and finding buyers in the $3,800 range once again.

As the crypto market gains momentum with the new day, WIF, LUNC, and FET continue to be the top gainers, witnessing a 50% increase in the top 100. On the other hand, THETA, ICP, and CHZ are among the top decliners, experiencing a nearly 10% drop within the top 100 altcoins.

source: prepared by Melisa Beğiç

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