Major cryptocurrencies took a tumble on Tuesday evening after the price of BTC corrected by 7% following a surge to a new all-time high of $69,324 at the reference price. CoinBase exchange.
| Cryptocurrency | Earnings +/- | Price (recorded at 9:30 PM EST) |
| Bitcoin Bitcoin/USD | -6.98% | $63,462 |
| Ethereum ETH/USD | -2.47% | $3,542 |
| Dogemoneta DOGE/USD | -25.08% | $0.14 |
What happened: Bitcoin plunged $5,000 on March 5, triggering widespread volatility in the market.
This reaction came just after Bitcoin hit an all-time high, a moment that bullish investors have been waiting for since November 2021.
Bitcoin’s rise in value was largely catalyzed by the approval of Bitcoin ETFs in January, pushing it past its previous peak in November 2021.
Data from CoinGlass reveals that over $884 million in long positions were liquidated in the past 24 hours, impacting a total of 311,448 traders and a combined liquidation value of $1.15 billion.
The most significant liquidation order, amounting to $9.00 million, took place on Bitmex XBT-USD. Focusing specifically on BTC, long positions worth $250 million were liquidated, while ETH suffered liquidations totaling over $209 million.
Best profit (24 hours)
| Cryptocurrency | Earnings +/- | Price (recorded at 9:30 pm EDT) |
| Starknet STRK/USD | +27.66% | $2.24 |
| Optimism OP/USD | +13.88% | $4.39 |
| ONCE BUT ONCE LEO/USD | +11.66% | $5.54 |
The global cryptocurrency market capitalization now stands at $2.35 trillion, recording a decline of 7.04% over the past 24 hours.
Stocks fell for a second straight session on Tuesday, with declines in major technology companies like Apple contributing to further declines.
The Nasdaq Composite fell 1.65% to close at 15,939.59 as technology stocks took the brunt of the market decline. The Dow Jones Industrial Average also lost 404.64 points, or 1.04%, to end the day at 38,585.19. Additionally, the S&P 500 index fell 1.02% to 5,078.65.
Apple saw a decline of nearly 3% following a report from Counterpoint Research, which revealed a sharp decline in iPhone sales in China during the first six weeks of 2024.
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Analyst Notes: Cryptocurrency Analyst Michael Van de Poppe advises investors to remain calm despite volatile market conditions, saying: “Sit back and relax.”
He adds: “Bitcoin went from $25,000 to $69,000 in less than four months. Altcoins are at cyclical lows in their BTC valuations. Flushes of liquidity occur, and these corrections are hard and painful. Markets are at the beginning of a bullish phase. Use the dive. Wait.”
Pseudonymous analyst Capital Rect raised the question of whether the current price cycle has “accelerated” due to the pre-halving move.
“Something to consider as we enter a new era for Bitcoin price action: We’ve never seen price action like this before,” he said.
Cryptographic analyst Aksel Kibar presented a chart illustrating Bitcoin’s surge past the $69,000 mark, labeling this milestone the “FOMO phase.”
Kibar identified BTC trading within the $65,000 and $68,000 ranges, approaching the November 2021 peak of around $69,000. He warned investors against giving in to the fear of missing out at this level.
He said: “$BTCUSD I don’t think this is a breakout to an all time signal. Don’t FOMO this part of the move.”
Another on-chain analyst Ali Martinez said: “Bitcoin’s MVRV indicator is at 19.57% right now! Since February 2021, every time it has crossed the 18% mark, the price of BTC has plummeted by 24% to 55%. Traders they should monitor this trend as it anticipates a strong price correction!”
A 55% drop from its current value would send Bitcoin to a price of around $35,000.
The MVRV (market value to realized value) indicator in cryptocurrency measures the ratio between a crypto asset’s market capitalization and its realized capitalization, serving as a tool to gauge whether the asset is over or undervalued. It helps investors understand market behavior by comparing the price at which coins last moved to the current price.
Photo by Igor Faun on Shutterstock
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