Hassan Maishera
TL;DR
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Bitcoin has set a new all-time high once again following its rally on Tuesday.
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The world’s leading cryptocurrency by market cap saw its price sharply decline from the $69,170 all-time high to the $62k region.
BTC Reaches a New All-time High
Bitcoin, the number one cryptocurrency by market cap, has set another milestone. BTC rallied by more than 8% on Tuesday to set a new all-time high price of $69,170. This is the first time BTC has crossed the $69k barrier since November 2021.
The rally was fueled by the institutional influx of cash into Bitcoin exchange-traded funds. Spot Bitcoin ETFs by BlackRock, Fidelity, Grayscale and others continue to rake in record-breaking trading volumes.
Although BTC crossed the $69k barrier, it couldn’t stay there for long. Bitcoin’s price experienced a flash crash that saw it dip to the $62k region. The price volatility caused a spike in liquidations, mostly impacting long positions.
Data obtained from Coinglass revealed that the volatility resulted in the liquidations of more than $197 million in bitcoin positions, with the majority ($108 million) being shorts. Furthermore, the overall crypto market saw over $383 million of liquidated long positions in the last 24 hours. For longs and shorts, there was a total of $678 million in liquidations across major centralized exchanges in the last couple of hours.
BTC is now slowly recovering and is currently trading above $65k per coin. Despite the pullback, market experts remain optimistic that BTC will reach new heights. Chainlink Co-Founder Sergey Nazarov is optimistic that this is the beginning of a new cycle. He said,
“When bitcoin's price surges, it attracts more capital to the ecosystem, which fuels innovation and development within the space. At the same time, we're observing an alignment of macro-environmental factors that bolster bitcoin's growth. The interplay of global economic trends, regulatory evolution, and market dynamics is merging with the rise of bitcoin ETFs."
Despite BTC’s pullback, ETH continues to surge higher. ETH crossed the $3,800 barrier on Tuesday before slightly retracing to now trade at $3,744, up by more than 1% in the last 24 hours.
Thanks to market volatility, the total crypto market cap, has declined by 6% and now stands at $2.37 trillion.
