- Bitcoin briefly hit a new all-time high above $69,000 before retreating sharply, causing a spike in liquidations of leveraged positions.
- Over $383 million of long positions were liquidated across major exchanges in the past 24 hours due to Bitcoin’s price volatility.
- Despite the pullback, experts suggest Bitcoin is entering a new positive cycle, citing factors like diminishing supply from the upcoming halving and increased institutional demand.
Bitcoin posted a sharp pullback after surging above $69,000 to hit a new all-time high. The price volatility caused a spike in liquidations of leveraged positions.
Bitcoin Briefly Hits New All-Time High Above $69,000
Bitcoin’s price surged briefly, touching a new all-time high above the $69,000 mark on Tuesday. However, the peak was fleeting and a swift pullback to the mid-$60,000 range led to a surge in the liquidation of leveraged positions.
Spike in Crypto Liquidations
Price volatility over the past 24 hours led to substantial liquidations of long positions on centralized exchanges. This volatility resulted in the liquidations of more than $197 million in bitcoin positions, with the majority ($108 million) being shorts, according to CoinGlass data.
Zooming out, the overall crypto market saw over $383 million of liquidated long positions in the last 24 hours, contributing to a total of $678 million in liquidations across major centralized exchanges, according to the data.
Liquidations Explained
Liquidations take place when a trader’s position is forcibly closed due to insufficient funds to cover losses. This happens when markets move against the trader’s position, resulting in the depletion of their initial margin or collateral.
Positive Market Cycle
Despite the pullback to the $65,000 range, Chainlink Co-Founder Sergey Nazarov suggests that the bitcoin market could be at the beginning of a new positive market cycle.
Diminishing Bitcoin Supply
This view concurs with that of Anchorage Digital CEO Nathan McCauley who sees the bitcoin all-time high as marking a turning point for the crypto market. He highlighted the current positive underlying economics associated with the largest digital asset by market cap, citing higher demand indicated by ETF activity and the upcoming halving contributing to a reduction in supply.
Altcoins Rally
Major altcoins such as SOL, the native coin of the Solana network, and ether sustained their rally, making daily gains of 25% and 35% respectively, according to The Block’s Prices Page.
Bitcoin Price Retreats
The largest digital asset by market cap has decreased by over 2% in the past 24 hours, changing hands for $65,117 at 11:57 am ET.
The GM 30 Index, representing a selection of the top 30 cryptocurrencies, has increased by 0.24% to 14,146 in the past 24 hours.
