Bitcoin's Significant Drop Provokes Global Crypto Market Decline
Summary:
On March 19, Bitcoin's (BTC) price fell by 7.2% to reach $62,400 amid a wider market correction. This decline triggered a sell-off in the global cryptocurrency market, where the total capitalization dropped by 8% to $2.4 trillion, affecting other top 10 non-stablecoin cryptocurrencies. Notably, a significant amount of funds flowed out of Grayscale's spot Bitcoin ETF GBTC, leading to slowing Bitcoin ETF flows. The quick fall in crypto prices has been attributed to a sharp movement in the crypto futures market.
March 19 saw Bitcoin's (BTC) value plummet by 7.2% to a rock-bottom of $62,400 as the cryptocurrency market experienced a broad correction, reaffirming the $68,000 resistance level for BTC. In light of BTC's peak on March 14, its current trading value is 15% below its all-time high of $73,835.
Looking deeper into the causes of Bitcoin's drop, we find that a fall beneath $63,000 on March 19 triggered a market-wide sell-off. The global crypto market lost 8% of its total worth in the span of 24 hours, leaving its capitalization at $2.4 trillion, according to CoinMarketCap data.
The downtrend also affected other top 10 non-stablecoin cryptocurrencies, with Ether (ETH) losing 8.4% of its worth in the last 24 hours. Faring no better, Solana (SOL), BNB Chain’s BNB, Cardano (ADA), and Dogecoin (DOGE) all fell more than 8% over the same period.
March 18 had seen memecoins enjoy a surge, but this was followed by a tumble. DOGE, Shiba Inu’s SHIB, and Pepe (PEPE) each dipped by over 7%. Solana’s Dogwifhat (WIF) and Book of Meme (BOME), the latest memecoins, recorded the top losses of over 14%. Reacting to the Solana-based memecoins crash, the prominent crypto investor, known as Lady of Crypto, remarked that late investors are being exploited as “exit liquidity.”
The massive sell orders caused Bitcoin's flash crash below $9,000 on BitMEX. Meanwhile, BTC prices on other exchanges maintained levels above $60,000.
Liquid funds worth more than $640 million were pulled from Grayscale’s spot Bitcoin ETF GBTC on March 18, according to BitMEX Research data. This marked the most substantial day of outflows since the fund began trading on January 11. Fidelity’s Bitcoin ETF FBTC saw inflows of nearly $5.9 billion. The net outflow observed was $154 million from spot Bitcoin ETFs.
Short-term investors taking profits are being blamed for slowing Bitcoin ETF flows and the selling pressure faced by BTC. On-chain data provider CryptoQuant reveals that investors who held BTC for less than five months have been cashing in over the past week, adding to the selling pressure.
The swift decline in crypto prices today appears to be connected to a sudden movement in the crypto futures market. Over the past 24 hours, total crypto liquidations reached $651 million, with long liquidations accounting for $515 million. Within an hour on March 19, long leverage Bitcoin liquidations surged $8 million, accumulating to $141 million over the past 24 hours and counting.
Typically, long liquidations happen when a sudden downtick in the price of the traded asset occurs, causing traders who bullishly opened long positions to endure losses as the market moves against their favor.
Please consult with a professional before making any investment or trading decisions since they involve risk.
Published At
3/19/2024 8:28:20 PM
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