By NewsBlogger The crypto market saw significant sell pressure leading to a drop in Bitcoin’s price to $61,000, resulting in over $1 billion in liquidations, with Bitcoin correcting from $69,000 to under $65,000, while institutional investors in the US show heightened interest in Bitcoin despite concerns about a potential market correction.
At a glance
- Bitcoin’s price dropped to $61,000 with over $1 billion in liquidations
- Bitcoin briefly hit an all-time high at $69,200 before dropping, leading to over 313,000 traders being liquidated
- Bitcoin veterans suggest the correction is healthy, with Bitcoin currently trading over $62,400
- Nine newly established spot ETFs have accumulated over $7.5 billion in BTC inflows since mid-January
- Ten Bitcoin ETFs did $10 billion in trading volume on March 5, surpassing $50 billion in assets under management
The details
On Tuesday, the crypto market experienced significant sell pressure, leading to a drop in Bitcoin’s price to $61,000. This drop resulted in over $1 billion in liquidations, with Bitcoin correcting from $69,000 to under $65,000. Within the past 24 hours, $1.17 billion in liquidations occurred, with $876 million of long trades and $292 million of shorts being liquidated.
Bitcoin’s Price Movement
Bitcoin briefly reclaimed its all-time high at $69,200 before dropping, causing over 313,000 traders to be liquidated. The largest single liquidation was on a LINK/USD trade on Bitmex valued at $11 million.
Market Sentiment
Despite the pullback, Bitcoin veterans on Twitter suggest that the correction is healthy and expected after reaching historic highs. As of the time of writing, Bitcoin is trading for over $62,400. The surge in Bitcoin’s price is attributed to purchases from recently established spot Bitcoin ETFs in the US. Bitcoin has grown by over 50% since the ETFs began operations on January 11.
Experts believe there is no reason to fear despite the substantial retreat after the all-time high, with indications that Bitcoin still has room to grow.
Bears in the market faced unexpected short squeezes on February 27th, 28th, and March 4th, with the premium on Coinbase currently at its peak since September of the previous year.
Institutional investors in the US are showing heightened interest in Bitcoin, with concerns about a potential market correction not shaking confidence. Bearish speculators have been unsuccessful in betting against Bitcoin’s price three times.
Nine newly established spot ETFs have amassed over $7.5 billion worth of BTC inflows since mid-January, and March 5 marked the highest trading volume day for the ten ETFs, reaching approximately $10 billion. BlackRock’s IBIT fund contributed the most substantial portion of the trading volume. On March 5, Bitcoin reached an all-time high in USD, with new spot ETFs hitting record trading volumes.
The ten Bitcoin ETFs did $10 billion in trading volume, breaking the previous record set on Feb. 28. BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB, and the Ark 21Shares ARKB fund all had record trading volume days. The Short Bitcoin Strategy ETF (BITI) from ProShares also had a record trading day. The ten-spot Bitcoin ETFs have surpassed $50 billion in assets under management.
March 4 saw high inflows for BlackRock and Fidelity, with more than $400 million each. Preliminary data indicates a large outflow for Grayscale, with $332 million exiting the GBTC fund. Bitcoin experienced a 12% flash crash following its all-time high but had recovered to around $66,000. Over the past 24 hours, more than 312,000 traders, mostly longs, were liquidated, totaling $1.15 billion.
