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BTC plunges to $67,000 as Asia begins the trading day
The price of bitcoin {{{BTC}}} fell as low as $67,000 during Asian trading hours on Friday, down 7%, before recovering to around $68,500.
The CoinDesk 20 Indexwhich measures the largest and most liquid digital assets, fell 6%. Data from CoinGlass shows that over $100 million in long positions were wiped out in the last 12 hours, while $167 million in long positions were liquidated in the last 24 hours.
Other assets like gold and Wall Street’s tech-heavy index Nasdaq they were put under pressure again this week.
Some analysts describe BTC’s retreat from all-time highs as a typical bullish pause seen after strong uptrends.
“The recent fort [U.S.] IPC data it further cooled expectations for a Fed rate cut, and gold prices also plummeted. The recent rise in bitcoin prices was too rapid for the market to properly evaluate, so a current correction is expected,” Greta Yuan, head of research at VDX, a digital asset platform in Hong Kong, said in a note.
Adrian Wang, founder and CEO of Metalpha, said the market could adapt to uncertainties ahead of next month’s mining halving of the reward.
“The historic trading volume of the Blackrock Bitcoin ETF has caused some unease in the market, with some stakeholders fearing that the price of bitcoin will rise too much too soon and could experience a flash crash,” Wang said in an email. email interview with CoinDesk. “The price correction indicates that the market is adjusting its expectations about bitcoin given the uncertainties also presented by the halving event.”
That said, the declines are likely to be temporary, according to Singapore-based QCP Capital.
“It is very unlikely that these short sell-offs will make a lasting dent in the uptrend as long as daily demand for BTC spot ETFs remains strong,” Singapore-based QCP Capital said in a note posted to Telegram on Friday morning, adding that Some expect volatility over the weekend as the market prepares for the release of Federal Open Market Committee minutes next week.
“[QCP]The desk has seen strong year-end call demand for BTC of 100-150,000,” the note reads.
A forecast market contract on Polymarket offers a 38% chance that BTC will close above $70,000 by midday US Eastern time on Friday, down from a 90% high earlier in the week.
CORRECTION (March 26, 2024, 2:48 PM UTC): Change the description of VDX to reflect that it is not a licensed exchange.