On Tuesday, Bitcoin experienced a notable decline, plummeting to below $63,000, coinciding with the first day of net outflows from exchange-traded funds (ETFs) investing in the cryptocurrency since March 1.
As of the latest data from CoinDesk, the leading cryptocurrency was trading around $65,337, marking a 2.8% decrease over the past 24 hours. While Bitcoin has witnessed a 7.8% dip over the last seven days, it remains up by over 50% since the beginning of the year, reaching a record high of $73,798 just last week.
Joel Kruger, market strategist at forex and crypto broker LMAX Group, noted that the current correction in Bitcoin’s price was widely anticipated and overdue. Despite the ongoing correction, Kruger believes that Bitcoin’s overall upward trend remains intact, although he warned that the cryptocurrency could potentially dip below the $60,000 mark.
On Monday, Bitcoin ETFs experienced net outflows for the first time since March 1, totaling approximately $154.3 million, as reported by Fundstrat data. Henry Robinson, co-founder and head of crypto at Decimal Digital Currency, attributed this to profit-taking among investors who had entered the market at lower price levels.
Robinson also highlighted the significant leverage present in the crypto market, which exacerbated Bitcoin’s decline on Tuesday. Over the past 24 hours, more than $480 million worth of leveraged long positions in Bitcoin were liquidated, according to data from Coinglass. Leveraged traders, who borrow funds to amplify their bets on asset price movements, faced forced liquidations as the price turned against them, adding downward pressure to Bitcoin’s movement.
Investor attention is now focused on the Federal Reserve meeting scheduled to conclude on Wednesday. Market participants anticipate that the central bank’s decision, along with comments from Fed Chair Jerome Powell, could influence Bitcoin’s short-term price action, particularly if the outcome is perceived as less dovish by investors, according to Kruger.
On Tuesday, the world of cryptocurrency witnessed a significant event as Bitcoin, the leading digital asset, experienced a notable decline, falling to under $63,000. This dip coincided with the first day of net outflows from exchange-traded funds (ETFs) investing in Bitcoin since March 1. Despite this recent setback, Bitcoin remained a focal point of the financial markets, trading around $65,337 at the time of reporting. While the cryptocurrency had endured a 2.8% decrease over the past 24 hours, it had still managed to maintain a substantial gain of over 50% since the beginning of the year, reaching an all-time high of $73,798 just the week before.
Market analysts and experts weighed in on the situation, with Joel Kruger, a market strategist at forex and crypto broker LMAX Group, remarking that the correction in Bitcoin’s price had been widely anticipated and overdue. Despite the ongoing correction, Kruger expressed confidence in Bitcoin’s overall upward trajectory, although he cautioned that the cryptocurrency could potentially dip below the psychologically significant $60,000 mark.
On the preceding day, Bitcoin ETFs saw net outflows for the first time in nearly a month, totaling approximately $154.3 million, according to data from Fundstrat. Henry Robinson, co-founder and head of crypto at Decimal Digital Currency, attributed this development to profit-taking among investors who had entered the market at lower price levels. This phenomenon was not unexpected, as it is common for investors to secure profits during periods of heightened volatility.
Furthermore, Robinson pointed out the significant leverage present in the crypto market, which contributed to exacerbating Bitcoin’s decline on Tuesday. Over the past 24 hours, more than $480 million worth of leveraged long positions in Bitcoin were liquidated, as reported by data from Coinglass. Leveraged traders, who borrow funds to amplify their bets on asset price movements, faced forced liquidations as the price turned against them, adding downward pressure to Bitcoin’s movement.
Looking ahead, investor attention was directed toward the Federal Reserve meeting scheduled to conclude on Wednesday. Market participants awaited the central bank’s decision and comments from Fed Chair Jerome Powell, as they could potentially impact Bitcoin’s short-term price action. In particular, investors speculated that if the outcome of the meeting was perceived as less dovish, it could influence Bitcoin’s price trajectory, further shaping the dynamics of the cryptocurrency market.