Bitcoin Dips Below $68,000 Amidst Anticipated Market Fluctuations: A Look into the Reasons Behind Today’s Downturn and Previous Trends
Bitcoin, the world’s largest cryptocurrency by market cap, has experienced a downturn recently, with its price trajectory indicating a potential slide towards the $45,000 mark. The current economic climate has left investors and enthusiasts on edge as they prepare for possible fluctuations in the crypto market.
As of March 15, 2023, Bitcoin’s (BTC) current value is $68,093.90, representing a decrease of 4.8% since the previous day and a minimal change of 0.5% compared to an hour prior. Seven days ago, Bitcoin’s value stood slightly lower than it is today by a mere 0.2%. The 24-hour trading volume of Bitcoin reached an impressive $87,438,712,929.
Bitcoin Tanks Ahead of the Weekend’s Negative Sentiment
Despite the uncertainty surrounding Bitcoin’s price movements, many market participants believe that the leading cryptocurrency is following the conventional path towards new macro highs. Although volatile price swings are common in the vicinity of its all-time high of $69,000 in 2021, these fluctuations do not seem to derail the ongoing Bitcoin bull run.
Bags, a pseudonymous merchant, discussed the upcoming block subsidy halving in an insightful comment published on X (formerly Twitter) on March 15. He compared previous halving cycles, which all saw significant price declines of around 40% prior to the event and subsequently transformed into periods of price discovery.
Bags explained that historical trends suggest a potential downside of approximately 40% from the most recent all-time highs, which could result in a price point of $45.5k. He went on to discuss the potential impact of spot Bitcoin exchange-traded funds (ETFs) inflows from the United States, which had been absent during prior cycles. Bags stated that every previous bull market featured its unique set of catalysts that ultimately failed to prevent a decline.
Why Has the Crypto Market Tanked Today?
Earlier today, the global crypto market cap experienced a substantial drop of 5.85%, resulting in a total value of $2.6 trillion. Market trading volume surged by 43.85% to reach $197.23 billion. Numerous cryptocurrencies, including Bitcoin, have undergone significant value losses that accumulated over several weeks.
As of March 15, 2023, the global crypto market cap is worth $2.72 trillion, reflecting a change of -144.71% compared to this time last year and a decrease of 4.37% in the last 24 hours. Bitcoin holds a market cap of $1.34 trillion, equating to a dominance of 49.28%. Stablecoins represent the second-largest market segment with a cap of $149 billion or 5.47% of the total crypto market cap.
The crypto market is susceptible to sudden bear attacks even during favorable periods. Many cryptocurrencies, including Bitcoin, Ethereum, and Solana, have exhibited similar drops since yesterday. Market experts encourage a cautious approach and suggest taking a step back before aiming high in the market’s current climate.
The market plummeted for three primary reasons: liquidation issues, market correction, and panic selling.
According to Coinglass data, significant liquidity issues have affected cryptocurrencies like Bitcoin, Ethereum, and Solana. Although Bitcoin’s bullishness had previously aided altcoin performance, it has started to decline since its departure from the $70K region. Over $666 million worth of crypto has been liquidated on the market, with long traders accounting for approximately $531 million of that total.
When it comes to Bitcoin, liquidation totaled $246.66 million, with long positions responsible for $195.61 million and short positions accounting for the remaining $47.05 million. Ethereum’s price decline following the Dencun upgrade led to liquidation worth $116.07 million, with long-term investors responsible for $94.86 million and short-term traders contributing $21.21 million.
Despite the recent downturn, Bitcoin and other cryptocurrencies have experienced a remarkable comeback after years of low returns. Ethereum had previously surpassed the $4,000 threshold but has since dropped to $3,668. Similar price declines can be observed in many other cryptocurrencies. Following a successful day in the market, a moderate decline is considered a normal market correction, commonly referred to as market balance.
As investors enter the crypto market’s most prosperous phase in three years, they don’t want to miss out on the best deals available. With many altcoins reaching their all-time highs recently, values have changed, leading to a panic selling situation. People would rather sell their tokens at the current price point than hold off for months to profit, potentially triggering further price decreases through panic selling.
