Bitcoin Experiences $5,000 Plunge Amid Unprecedented Market Volatility
Summary:
After establishing a new record high, Bitcoin's value experienced a sharp $5,000 plunge within an hour, stirring significant market volatility. This drop occurred despite the long-awaited Bitcoin bull run since November 2021. Analysts offered different perspectives on this rapid fluctuation, underscoring the uniqueness of this year's market aspects, citing the possible impact of accelerated pre-halving movements and the role of ETF inflows in this scenario. Notably, nearly $150 million of BTC was liquidated during the price correction after hitting its new high.
Bitcoin (BTC) underwent a $5,000 decline on March 5, following the achievement of a new record high in BTC value, which prompted significant market fluctuations. BTC/USD witnessed a sudden 6.7% drop in just over an hour, as per data from Cointelegraph Markets Pro and TradingView. This quick drop in value came in the wake of Bitcoin reaching an all-time high, an occurrence the cryptocurrency market has been anticipating since November last year.
As the market was still experiencing sharp volatility at the time this report was written, market analysts were seeking to provide a balanced point of view on the current state of trade. Vijay Boyapati, a well-known author and educator in the crypto industry suggested on X (previously known as Twitter) that it's completely usual for a steep decline to follow an all-time high in Bitcoin value during each cycle.
CoinGlass, a monitoring tool, estimated that nearly $150 million worth of Bitcoin was liquidated during the price correction from its new high of $69,210 on Bitstamp. Longtime hodlers were celebrating the highs for reasons other than their return to mainstream attention. Some pointed out that this is the first time BTC has hit record levels prior to a block subsidy halving, an occurrence Boyapati termed "unprecedented", and JAN3 CEO Samson Mow deemed a disruptive force to previous market cycles.
Renowned trade analyst, Rekt Capital, in his most recent YouTube update, addressed the possibility that the current price cycle had sped up owing to the pre-halving surge. He observed that in earlier cycles, BTC took around 500 days to achieve new all-time highs post a halving, signifying that the current progress might be more rapid than scheduled. He underlined the novelty of this year's market aspects, stating that bitcoin's future depends on how it interacts with the forthcoming high points.
In contrast, trader Mikybull Crypto examined how in 2020, BTC/USD stayed beneath the new record highs for two weeks prior to witnessing a positive shift, and pondered whether the current scenario would be different due to ETFs inflows.
Please note, this article does not contain any investment advice or recommendations. Investments and trade moves come with risks, and prospective investors should conduct their own diligence before making any decisions.
Published At
3/5/2024 7:59:11 PM
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