Home Bitcoin News Bitcoin Plummets to Multi-Week Low: Traders Stunned by Heavy Correction

Bitcoin Plummets to Multi-Week Low: Traders Stunned by Heavy Correction

BTC Price Down

In the tumultuous and ever-evolving world of cryptocurrency, the recent price correction in Bitcoin has captured the attention of traders, investors, and analysts alike. Bitcoin, the flagship digital asset, experienced a significant downturn during Asian trading hours, plunging to a multi-week low of under $66,000. This sudden and sharp decline caught many market participants off guard, resulting in substantial losses for those who had positioned themselves for continued price appreciation.

The preceding weeks had witnessed Bitcoin riding a wave of optimism, buoyed by anticipation surrounding the potential launch of spot Bitcoin exchange-traded funds (ETFs). This optimistic sentiment reached its peak on March 14 when Bitcoin surged to a new all-time high of $73,750. However, the euphoria was short-lived as the market succumbed to heavy volatility, leading to a rapid decline in price to its lowest point at $65,872.

Experts at Ouroboros Capital, a prominent crypto hedge fund, attributed this sharp market correction to macroeconomic factors, particularly concerns over inflation. Recent inflation data seemed to validate market fears regarding the sustained resurgence of inflation since the beginning of the year. The sudden realization of these macroeconomic risks prompted a swift and pronounced reaction in the cryptocurrency market, with Bitcoin serving as the bellwether for broader sentiment.

“My biggest fear is here – macro boogieman. The macro boogieman is very dangerous in a bull market cause everyone’s too focused on the bottom up, the narratives, the rotations, and being risk on,” emphasized experts at Ouroboros Capital, highlighting the importance of considering macroeconomic indicators in a rapidly evolving market landscape.

Despite the initial shock, Bitcoin’s price managed to rebound slightly to $66,536 at the time of writing, according to data from CryptoSlate. However, the reverberations of Bitcoin’s volatility were felt across the broader crypto market, with other top assets like Solana, Ethereum, BNB, and XRP also experiencing losses exceeding 5% during the same period.

The market downturn inflicted a heavy toll on crypto traders, as evidenced by the staggering loss of over $126 million within the past hour alone. Long traders bore the brunt of these losses, with $121 million evaporating from their positions, while short traders faced more modest losses totaling $5 million, according to data from CoinGlass.

Zooming out to the past 24 hours, the losses were even more pronounced, with long traders suffering liquidations surpassing $666 million, compared to short traders’ losses of $135 million during the same period. Bitcoin enthusiasts, in particular, were severely impacted by the liquidation storm, with losses totaling over $274 million, representing approximately 34% of the total losses. Long traders saw approximately $225 million vanish, while short traders faced a setback of $49 million.

One notable instance of liquidation involved a $13 million long BTC position held on the OKX exchange, underscoring the scale and impact of the market correction.

Meanwhile, Ethereum traders also experienced significant losses, with liquidations exceeding $130 million. Long position holders in Ethereum incurred losses of about $112 million, while short positions suffered losses of $21.65 million, further highlighting the widespread impact of Bitcoin’s volatility on the broader cryptocurrency market.

This sudden and pronounced market correction serves as a poignant reminder of the inherent volatility and unpredictability of the cryptocurrency market. While periods of bullish momentum may instill optimism and excitement among investors and traders, it is essential to remain vigilant and prepared for sharp reversals. Macro-economic factors, market sentiment, regulatory developments, and technological advancements can all contribute to sudden shifts in the trajectory of prices, underscoring the importance of adopting a prudent and cautious approach to navigating the crypto market.

As the crypto market continues to evolve and mature, market participants must remain adaptable and agile in their strategies, recognizing both the opportunities and risks inherent in this dynamic ecosystem. By staying informed, exercising due diligence, and employing risk management strategies, investors and traders can better position themselves to weather market volatility and capitalize on emerging trends in the ever-evolving world of cryptocurrency.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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