Bitcoin {{{BTC}}} price fell 7% to $67,000 during Friday's Asian trading hours, before recovering to around $68,500.
The CoinDesk 20 Index, the largest and most liquid index of digital assets, fell 6%. According to CoinGlass data, over $100 million of long positions were liquidated in the past 12 hours, and $167 million of long positions were liquidated in the past 24 hours.
Other assets such as gold and Wall Street's tech-heavy Nasdaq have also come under pressure this week.
Some analysts have described Bitcoin's pullback from its record highs as a classic bull market that follows a sharp uptrend.
“Recently, what is strong is [U.S.] The CPI data further dampened expectations for a Fed rate cut, and gold prices also fell. “The current correction is expected as the recent surge in Bitcoin prices is too fast for the market to accurately price,” Greta Yuan, head of research at Hong Kong licensed exchange VDX, said in a note. .
Metalpha founder and CEO Adrian Wang said the market may be adjusting to uncertainty ahead of next month's halving of mining fees.
“The historic trading volumes of BlackRock's Bitcoin ETF are causing anxiety in the market, with some stakeholders believing that Bitcoin prices have risen too fast to flush,” Wang said in an email interview with CoinDesk. “We are concerned about the possibility of a crash.” “The price correction indicates that the market is adjusting its expectations for Bitcoin to account for the uncertainty brought about by the halving event.”
However, the decline is likely to be temporary, according to Singapore-based QCP Capital.
“As long as daily BTC spot ETF demand remains strong, it will be very difficult for these short sellers to permanently halt the uptrend,” Singapore-based QCP Capital said in a note posted on Telegram Friday morning. , some investors added. Volatility is expected to increase over the weekend as markets prepare for the release of the Federal Open Market Committee minutes next week.
”[QCP]Desk saw strong demand for year-end 100,000-150,000 BTC calls,” the note continued.
According to Polymarket's predictive market contract, there is a 38% chance that BTC will close above $70,000 by noon ET on Friday, down from a high of 90% earlier this week.
