By NewsBlogger Bitcoin and the cryptocurrency market experienced significant volatility in the past 12 hours, with Bitcoin failing to overcome $71,000 and altcoins seeing double-digit declines, while geopolitical tensions and US Federal Reserve comments also influenced market movements.
At a glance
- Bitcoin and the cryptocurrency market experienced significant volatility in the past 12 hours.
- Overleveraged traders faced massive price fluctuations, resulting in almost $1 billion in liquidations and wiping out nearly 300,000 traders.
- Bitcoin struggled to overcome the $71,000 level, dropping to around $65,000 before recovering to approximately $67,000.
- Ethereum lost 8% of its value, falling to $3,230, while Bitcoin halvings are believed to have diminishing effects on BTC’s value.
- Market volatility was influenced by geopolitical tensions in Europe and the Middle East, as well as comments from US Federal Reserve officials forecasting a delay in potential monetary policy changes.
The details
Bitcoin and the cryptocurrency market experienced significant volatility in the past 12 hours.
Bitcoin’s price failed to overcome the $71,000 level decisively, dropping to around $65,000 before recovering to approximately $67,000. Altcoins such as XRP, SOL, DOGE, TON, ADA, AVAX, BCH, SHIB, and DOT also saw double-digit declines.
Overleveraged traders felt massive price fluctuations, leading to almost $1 billion in liquidations and wiping out almost 300,000 traders in the past day.
Bitcoin’s Struggle
According to CryptoPotato, Bitcoin’s attempts to overcome $71,000 had little success.
Bears pushed the cryptocurrency south to around $70,000, plunging to a weekly low of around $65,000. BTC has since recovered but remains about 5% down on the day.
Bitcoin Halvings
Ethereum has shed 8% of its value, plummeting to $3,230.
CryptoQuant believes that Bitcoin halvings have diminishing effects on BTC’s value.
The new issuance of BTC is getting smaller in relation to the number being sold by long-term holders.
Bitcoin monthly issuance has fallen to 4% of the total BTC supply available, compared to previous halving events where issuance represented 69%, 27%, and 10% of the available BTC supply.
Demand from permanent BTC holders has surpassed issuance for the first time in history, with long-term holder Bitcoin spending correlating with the price cycle.
The upcoming Bitcoin halving is expected to further reduce monthly issuance to approximately 14,000. Previous cycles have seen a rise in Bitcoin demand growth from large holders and whales fueling post-halving price rallies.
Current demand growth is around 11% month-on-month, its highest ever.
Bitcoin reached a new all-time high before the halving for the first time last month, driven by surging demand for spot Bitcoin exchange-traded funds.
Market Volatility
The cryptocurrency market’s volatility was influenced by geopolitical tensions in Europe and the Middle East.
Comments from US Federal Reserve officials forecasting a delay in potential pivot from current monetary policy also played a role.
Gold decreased by 4% from its all-time high of $2,433 to $2,333. An expected increase in price against the dollar following Fed comments is anticipated.
The greenback rose against other currencies due to higher interest rates, impacting riskier markets like crypto and Wall Street.
Overall, the market remains in the red on a daily scale but has shown some recovery since the recent lows.
The Bitcoin halving, scheduled to take place in just days, is historically seen as a catalyst for a new bull run.
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| cryptopotato.com |
|---|
| – Bitcoin’s price failed to overcome the $71,000 level decisively today – |
| The subsequent rejection pushed the asset south hard, dumping to around $65,000 – Altcoins have suffered even more, with numerous double-digit losses from XRP, SOL, DOGE, TON, ADA, and more – CryptoPotato reported earlier BTC’s attempts to overcome $71,000 had little success – Bears managed to intercept the moves and pushed the cryptocurrency south to around $70,000 – Bitcoin’s price plunged to a weekly low of around $65,000 – BTC has recovered some ground since then and now sits at around $67,000, still about 5% down on the day – Ethereum has shed 8% of its value and has plummeted to $3,230 – SOL, XRP, DOGE, TON, ADA, AVAX, BCH, SHIB, and DOT have all dropped by double digits on a daily scale – Overleveraged traders have felt massive price fluctuations as liquidations have skyrocketed to almost $500 million in the past hour alone – Almost 300,000 traders have been wiped out in the past day – |
| The single largest liquidated position was placed on OKX and was worth more than $7 million |
| cryptopotato.com |
|---|
| – CryptoQuant believes Bitcoin halvings have diminishing effects on BTC’s value – The new issuance of BTC is getting smaller in relation to the number being sold by long-term holders – Bitcoin monthly issuance has fallen to 4% of the total BTC supply available – Before previous halving events, Bitcoin issuance represented 69%, 27%, and 10% of the available BTC supply – Last year, Bitcoin issuance averaged 28,000 per month, compared to 417,000 BTC offloaded by long-term holders – Demand from permanent BTC holders has surpassed issuance for the first time in history – Long-term holder Bitcoin spending correlates with the price cycle – After the upcoming halving, monthly issuance will decline to approximately 14,000 – Previous cycles saw rise in Bitcoin demand growth from large holders and whales fuel post-halving price rallies – Current demand growth is around 11% month-on-month, its highest ever – Bitcoin reached a new all-time high before halving for the first time last month – Rally was driven by surging demand for spot Bitcoin exchange-traded funds – Selling pressure from OG BTC holders (those with coins 5+ years old) expected to increase after halving – Spending from OG Holders currently at around 8% annualized, historically 1.1% – Current issuance stands at 1.8% annualized and will drop to ~0.8% annualized after this month’s halving |
| cryptopotato.com |
|---|
| – Cryptocurrency market experienced significant volatility in the past 12 hours, resulting in nearly $1 billion in liquidations – Bitcoin price dropped from around $71,000 to $65,000 before recovering to approximately $67,000 – Altcoins saw double-digit declines within hours – US stock markets, including S&P 500, Dow Jones Industrial Average, and Nasdaq Composite, also experienced price declines – Gold decreased by 4% in hours from its all-time high of $2,433 to $2,333 – Geopolitical tension in Europe and the Middle East contributed to gold price increases – Comments from US Federal Reserve officials, including Raphael Bostic and Mary Daly, forecasted a delay in potential pivot from current monetary policy – Daly stated there is no urgency to reduce interest rates – Comments from Fed officials led to volatility in riskier markets like crypto and Wall Street – Gold may see an increase in price against the dollar following Fed comments – Greenback rose against other currencies due to higher interest rates – Crypto market remains in the red on a daily scale but has recovered some ground since the lows seen last night – Bitcoin halving is scheduled to take place in just days, historically seen as a catalyst for a new bull run |
