Loading...

Bitcoin sees minor correction, falls below $64k after hitting new ATH

bitcoin

Contents

Share link:

TL;DR

  • Bitcoin dropped $5,000 on March 5 after hitting a new all-time high, showing its usual volatility.
  • The cryptocurrency experienced a 6.7% loss in just over an hour, sparking widespread reactions.
  • Experts like Vijay Boyapati view these pullbacks as normal parts of Bitcoin’s cycle.

Bitcoin just went through another one of its infamous mood swings, dropping $5,000 on March 5 right after setting a new record high of $69,200. This rollercoaster didn’t stop there. The cryptocurrency saw a sharp 6.7% drop in a little over an hour.

Observers, trying to keep a cool head amidst the chaos, saw this as part of the crypto cycle. Vijay Boyapati mentioned on social media that it’s typical for Bitcoin to take a step back after hitting a high, cause the big players often sell off at these peaks. This dip, though, is seen as breaking a psychological barrier, making way for what’s called true price discovery.

CoinGlass reported nearly $150 million worth of Bitcoin got liquidated during this downturn from its peak of $69,210. Despite the downturn, long-term Bitcoin holders found a silver lining, celebrating this high as a first of its kind, occurring before the halving.

Experts, like Rekt Capital, say we are entering a new phase for Bitcoin, and it is moving faster than expected compared to previous cycles. People are arguing about whether such a rapid rise before a halving is a sign of an accelerated cycle.

With its market capitalization at about $1.3 trillion, it’s a heavyweight in the $2.6 trillion crypto market. This resurgence has everyone asking, “What’s driving Bitcoin now?”

Created in 2008 by the mysterious Satoshi Nakamoto, Bitcoin was designed as a cryptocurrency for direct online payments, bypassing traditional financial institutions. Its unique blockchain technology and the mining process that validates transactions make it a secure, decentralized financial system. Its appeal? Offering a way to conduct transactions without oversight from banks, attracting those looking for alternatives to traditional financial systems, especially in a low-interest-rate environment where traditional investments are less attractive.

Despite its volatility, some see Bitcoin as a hedge against inflation, akin to gold, though not everyone’s convinced of its stability. The recent approval of ETFs tracking Bitcoin’s price signals a maturity in the crypto market, attracting more institutional investors. Yet, the crypto industry is not without its dramas, highlighted by the collapse of major exchange FTX and the legal troubles of key figures in the industry.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Share link:

Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

No one seems to care about spot Bitcoin ETFs anymore
Cryptopolitan
Subscribe to CryptoPolitan