- Bitcoin and ether reached new highs on Tuesday, with bitcoin hitting $69,210 for the first time since November 2021 and ether reaching its highest level since January 2022 at $3,817.45.
- Shortly after hitting the new highs, prices tumbled around 8% for bitcoin and sharply declined for ether and other major cryptocurrencies as well, likely triggered by leveraged traders taking profits after bitcoin hit $69,000.
- On Wednesday, cryptocurrency prices rebounded and recovered much of the previous day’s losses, with bitcoin up 7% to $67,015 and ether jumping over 12% to $3,817. The declines are viewed as a bullish correction rather than a major reversal by some analysts.
On Tuesday, bitcoin reached a new intraday record high of $69,210 for the first time since November 2021. Ether also surged to its highest level since January 2022, reaching $3,817.45. The price increases come after bitcoin climbed 55% over the past month.
Prices Tumble After Hitting New Highs
Shortly after reaching the new all-time high, bitcoin’s price tumbled around 8%. The sell-off also caused ether and other major cryptocurrencies like Binance Coin and Solana to fall as well. The declines seemed to be triggered by leveraged traders taking profits after bitcoin hit the key $69,000 level.
Leveraged Positions Liquidated
According to data from CoinGlass, around $100 million in short liquidations and $236 million in long liquidations occurred across exchanges in the 24 hours leading up to Wednesday morning. When traders use leverage and prices move against them, they are forced to buy or sell assets to cover their losses. This can accelerate price swings.
Cryptocurrencies Rebound on Wednesday
On Wednesday, cryptocurrency prices bounced back and recovered much of the previous day’s losses. Bitcoin was up 7% at $67,015 while ether jumped over 12% to $3,817. Other coins like Binance Coin, Solana, Dogecoin and Shiba Inu also posted double-digit percentage gains. Crypto-related stocks like Coinbase, MicroStrategy and Marathon Digital rose as well.
Looking Ahead at Bitcoin’s Price
Some analysts view Tuesday’s decline as a bullish correction rather than a major reversal. Additional tests of the all-time highs around $69,000 seem likely, especially if bitcoin can break through that level decisively. With large options positions expiring this month, increased volatility is expected. But if bitcoin keeps setting new highs, it could accelerate the current melt-up in prices.
