Bitcoin plunges after hitting new high, over 300,000 people liquidated, $12 billion wiped out
TechFlow Selected TechFlow Selected
Bitcoin plunges after hitting new high, over 300,000 people liquidated, $12 billion wiped out
Will adjustments continue?
Navigating Web3 tides with focused insightsBy Mary Liu, TechFlow
On Tuesday, Bitcoin surged to a new all-time high for the first time in over two years, only to quickly plunge.
According to Bitpush News terminal data, BTC broke above $69,210 on Tuesday morning before rapidly retreating, briefly dropping below $60,000 intraday and recovering to above $61,000 at the time of writing.
Ethereum briefly rose 6.5% to $3,828.81 before erasing all gains and falling to $3,412.64. Other major altcoins such as ADA, DOGE, and SHIB declined around 10%-12%.
The extreme market volatility triggered nearly $1.2 billion in liquidations across the board.
Data from CoinGlass shows that within the past 24 hours, 318,392 traders were liquidated with a total value of $1.19 billion. Long positions accounted for $878 million in liquidations, while short positions made up $310 million. The largest single liquidation occurred on Bitmex involving a LINK/USD contract worth $11.35 million.
More Adjustments Ahead?
Will Clemente, co-founder of Reflexivity Research, said on X that Tuesday’s liquidation wave reminded him of Bitcoin’s price action around Thanksgiving 2020. At that time, bulls were eyeing a breakout above $20,000, but after reaching $19,500, Bitcoin sharply dropped to around $16,000 within a short period.
In his post, he stated: "Any pullback serves to shake off highly leveraged positions and is an opportunity to buy."
Some analysts have warned that as unrealized profit margins approach extreme levels, the rally could cool down soon.
Ed Tolson, CEO and founder of cryptocurrency hedge fund Kbit, tweeted: "A significant correction is expected, potentially ranging from 10% to 20%. Any meaningful downside will likely trigger cascading liquidations in the crypto perpetual swap markets, where retail investors have piled into leveraged long positions amid very high funding rates."
He added: "We expect Bitcoin to perform well over the next few quarters, but there will be substantial corrections along the way."
Owen Lau, analyst at Oppenheimer, also commented: "The pace of the rally has been so rapid that we remain cautious about near-term corrections. However, longer-term catalysts still support a positive price outlook." He added: "As Bitcoin becomes more valuable, it also becomes more useful. With higher market capitalization and daily trading volume, it can support larger allocations. Bitcoin's volatility continues to decline over time, allowing for larger position sizing."
Clara Medalie, research director at crypto data provider Kaiko, echoed this sentiment, calling the new record "an important psychological milestone" and evidence of "the remarkable resilience of cryptocurrencies in bouncing back and persisting despite strong resistance."
Acceleration of Bull Market Cycle
Speculation about Bitcoin’s future price trajectory is intensifying, with some analysts questioning whether the recent pre-halving peak has accelerated the typical market cycle.
Historical data shows that traditionally, Bitcoin takes approximately 500 days after a halving event to reach a new all-time high. This deviation from the norm suggests we may be entering a new era of Bitcoin price behavior.
Within the crypto community, opinions remain divided on the implications of the recent price correction and its impact on future market trends. Some analysts believe Bitcoin might undergo sideways consolidation before resuming its upward trajectory.
Meanwhile, speculation persists that inflows into spot Bitcoin ETFs and other market factors could play a pivotal role in shaping Bitcoin’s path forward.
Since the launch of spot Bitcoin ETFs in January, institutions have begun flooding into the sector. These ETFs have delivered record-breaking performance over the past six weeks. As of Tuesday’s close, spot Bitcoin ETF trading volume hit a new all-time high of $10 billion.
Alex Thorn, head of research at Galaxy Digital, said: "Bitcoin hitting a new all-time high again shows it's not going away. Over its 15-year history, Bitcoin has weathered four drawdowns of more than 75%, yet each time it has bounced back strongly."
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
比推 BitpushNews
