Bitcoin extended its decline on Tuesday, dropping more than $10,000 from last week's all-time high.
The flagship cryptocurrency was last down 6% at $62,918.35, according to Coin Metrics. Last week, it rose to an all-time high of $73,679.
This move contributed to the decline in other cryptocurrencies. Ether fell more than 5% and was most recently trading at $3,287.58 after topping $4,000 last week for the first time since December 2021, although some analysts were predicting a decline after the network's Dencun upgrade. . Tokens associated with Solana fell 8%, Dogecoin fell 7%, and XRP fell 2%.
Among crypto-related stocks in pre-market trading, Bitcoin agency MicroStrategy fell 10% and crypto exchange Coinbase fell 5%. Mining stocks fell across the board, with the biggest companies, Riot Platforms and Marathon Digital, dropping 6% and 5%, respectively.
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Bitcoin falls below $63,000
Bitcoin's decline began last week as traders began taking profits after it soared about 70% from the start of the year to last Wednesday's all-time high. According to data from CryptoQuant, there was a significant spike in investors selling Bitcoin for a profit on March 12th.
Furthermore, that profit taking led to a surge in long-term liquidations of leveraged Bitcoin positions. According to Coinglass, approximately $122 million in long-term liquidations occurred across centralized exchanges on Monday. Last week, long-term liquidations from Wednesday to Friday were approximately $372 million.
The successful introduction of a spot Bitcoin ETF in the US earlier this year contributed significantly to Bitcoin's rally, which began even before the ETF was launched in anticipation of regulatory approval. At the same time, increased investor interest and demand for Bitcoin is increasing leverage and high-frequency volatility.
Investors and analysts say traders should pay attention in March as increased volatility coupled with increased trading volume could lead to a pullback from Bitcoin's long-term uptrend. It warns that.
Chart watchers primarily say that Bitcoin is on a path to new highs, but could see a sharp correction along the way.