Bitcoin Gold continued its decline on Tuesday, falling more than $10,000 from its all-time high last week.
The major cryptocurrency recently fell 6.5% to $62,749.99, according to Coin Metrics. Last week, it rose to a record high of $73,679.
“As ETFs buy up the available supply of bitcoin on the open market and continue to reduce liquidity, these events may become more frequent, and may cause people to lose confidence in the integrity of bitcoin pricing and start looking away” from other crypto assets, Bartosz said. Lipinski, CEO of Cube.Exchange.
The move helped drag other cryptocurrencies lower. ether It lost more than 5% and was recently trading at $3,287.58 after topping $4,000 last week for the first time since December 2021, a decline some analysts expected following Dencun's network upgrade. The symbol associated with it Solana decreased 8% Dogecoin He lost 7% and XRP Decline 2%.
Among the stocks related to cryptocurrencies is Bitcoin Proxy Accurate strategy It fell by 10%, while cryptocurrency exchanges fell Coinbase Decreased 5%. Mining company stocks fell across the board, with the largest, Riot pads And Digital MarathonA decrease of 6% and 5%, respectively.
Bitcoin drops below $63,000
“Overall, it would make sense for this decline to be short-lived and for the rally to resume – although the specter of a recession next year looms over markets and could dampen the rally in ways we may not be able to anticipate.”
Bitcoin's weakness began last week as traders began taking profits after it surged nearly 70% year-to-date to its peak last Wednesday. Data from CryptoQuant shows a massive spike in the number of investors selling their Bitcoin at a profit on March 12.
In addition, profit taking has led to a spike in long liquidations of leveraged Bitcoin positions. About $122 million worth of long liquidations occurred across centralized exchanges on Monday, according to CoinGlass. Last week, there was about $372 million in long liquidations from Wednesday to Friday.
The successful introduction of spot Bitcoin exchange-traded funds in the United States earlier this year was a major contributor to Bitcoin's rally, which began even before the ETFs were launched in anticipation of their regulatory approval. At the same time, investor interest and high demand for Bitcoin have also led to increased leverage and increased high-frequency volatility.
Investors and analysts have warned that traders should be cautious in March, as more volatile price action, combined with increased trading volumes, could lead to pullbacks from Bitcoin's long-term uptrend.
Chart watchers have mostly said that Bitcoin is on its way to new highs but may also see sharp corrections along the way.
