- Bitcoin’s price hit an all-time high of $69,150 before dropping 14% to $59,300, showing the volatility of cryptocurrency investing.
- The Bitcoin sell-off coincided with a tech stock decline, prompting Bitcoin whales to short the cryptocurrency.
- Despite the correction, derivatives data indicates professional traders remain cautiously bullish on further price gains as cryptocurrency adoption rises.
Bitcoin‘s price hit an all-time high of $69,150 before dropping 14% to $59,300. This volatility highlights the risks and rewards of cryptocurrency investing.
What Caused the Bitcoin Price Crash?
The sharp Bitcoin sell-off coincided with a 2.6% retracement in the tech-heavy Nasdaq-100 index futures. Shares of some companies like New York Community Bancorp also declined, causing investors to seek safe havens like gold. This likely prompted Bitcoin whales to short the cryptocurrency.
Cautious Optimism Among Bitcoin Traders
Despite the correction, derivatives metrics show professional Bitcoin traders remain slightly bullish. The futures premium was 15% during the entire rise to $69,150, indicating market makers see $62,000-$64,000 as strong support levels.
Options data also reveals traders are not overly excited. The 25 delta skew is at -7, meaning options traders don’t expect Bitcoin to break $70,000 soon. Traditionally, uncertainty causes investors to favor bonds and cash. However, Bitcoin ETF inflows from gold suggest bullish momentum could continue.
Conclusion
Bitcoin’s latest all-time high and correction highlights the asset’s volatility. However, derivatives data indicates professional traders remain cautiously optimistic about further price appreciation. As cryptocurrency adoption increases, Bitcoin’s bull run could continue ascending to new heights.
