Recently, Bitcoin Dropped Below $63,000 From $73,000 Last Week

(CTN News) – On Tuesday, bitcoin’s price continued its downward trend, dropping more than $10,000 from its all-time high last week at one point.

Based on Coin Metrics, the flagship cryptocurrency last traded at $64,440.14, a decrease of 4%. It had previously fallen to a low of $62,320.30, following a record high of $73,679 the week before.

In light of ETFs’ increasing purchase of bitcoins on the open market and continuing to decrease liquidity, these occurrences may become more frequent and may lead to a loss of faith in the integrity of bitcoin pricing, according to Bartosz Lipiński, CEO of Cube.Exchange.

As of today, it was trading at $3,335.66, down more than 4% from last week’s price of $4,000 – a drop some analysts had predicted following the network’s Dencun upgrade. Solana tokens and dogecoins declined by 8% and 5%, respectively.

The price of crypto-related stocks has recovered from earlier losses, but remains under pressure. The price of Bitcoin proxy MicroStrategy dropped 5%, while the price of crypto exchange Coinbase declined 4%.

The mining stocks were initially down across the board, but some of them have since turned positive. In particular, Riot Platforms and Marathon Digital were down by 3% and 0.5%, respectively.

As a consequence, it is likely that this pullback will be short-lived and that the rally will resume. However, the specter of a recession next year could temper the rally in ways we were not able to anticipate,” Lipiński said.

As traders took profits after Bitcoin soared roughly 70% from the beginning of the year to its peak last Wednesday, Bitcoin’s weakness began last week. On March 12, CryptoQuant data indicates a dramatic increase in short-term holders selling their a profit.

Furthermore, this profit-taking resulted in an increase in the number of long liquidations of leveraged bitcoin positions. Over the past 24 hours, about $145 million has been liquidated across centralized exchanges, while $122 million occurred on Monday, according to CoinGlass.

Between Wednesday and Friday last week, there were approximately $372 million in long liquidations. The successful introduction of spot bitcoin exchange-traded funds in the United States earlier this year has contributed greatly to bitcoin’s rally, which began even before the ETFs were approved by regulators.

Furthermore, the increased interest from investors and increased demand for bitcoin have also resulted in higher leverage and greater volatility associated with high-frequency trading.

In March, investors and analysts are warning traders to exercise caution as more volatile price action, coupled with increased trading volumes, could lead to a pullback from long-term upward trend.

In general, chart watchers believe bitcoin is on a path to new highs, but that there could also be steep corrections on the way.

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