Bitcoin plunged after breaking new highs, more than 300,000 people liquidated their positions, and US$1.2 billion evaporated

Original title: "Bitcoin plunged after breaking new highs, more than 300,000 people liquidated their positions, and US$1.2 billion evaporated"

Original author: Mary Liu, BitpushNews

Bitcoin plunged sharply on Tuesday after hitting an all-time high for the first time in more than two years.

Bitui terminal data shows that BTC exceeded US$69,210 on Tuesday morning, and then fell back quickly. It once fell below US$60,000 during the session, and rebounded to US$69,000 as of press time. Above $61,000.

Ethereum once rose by 6.5 % to $3,828.81, then wiped out all gains and fell to $3,412.64. Other mainstream altcoins such as ADA, DOGE and SHIB fell by about 10%-12%.

The sharp rise and fall of the market caused nearly 1.2 billion US dollars in positions to be liquidated across the entire network.

According to data from CoinGlass, 318,392 traders were liquidated in the past 24 hours, totaling $1.19 billion. Among them, long positions were liquidated at US$878 million and short positions were liquidated at US$310 million. The largest single liquidation order occurred on the Bitmex platform, for the LINK/USD trading pair worth $11.35 million.

Will it continue to be adjusted?

Will Clemente, co-founder of Reflexivity Research, said on the X platform that Tuesday’s liquidation reminded him of Bitcoin’s trend around Thanksgiving in 2020. At the time, bulls were eyeing an imminent break above $20,000 levels, but Bitcoin plummeted after hitting $19,500 and fell to around $16,000 in a short period of time.

He said in the X post: "Any dip is to wash away the shackles of high leverage and buy at this time."

Some analysts warn that conditions could soon cool down as unrealized margins approach extreme levels.

Ed Tolson, CEO and founder of cryptocurrency hedge fund Kbit, issued a statement saying: "The market is expected to see a substantial adjustment, which may range from 10% to 20%. Between. Any substantial decline will lead to cascading liquidations in the crypto perpetual swap market, retail investors pouring into leveraged long positions, and funding rates are very high."

He added: "Over the next few quarters, we expect Bitcoin to perform well, but with significant corrections along the way."

Oppenheimer analyst Owen Lau also said: "The rise is so rapid that we are cautious about a correction, but in the long term, there is still support Catalyst for positive price movements". He added: “As Bitcoin becomes more valuable, it becomes more useful. At higher market caps and daily circulation, it can support larger allocations. Bitcoin’s volatility increases with The continued decline over time allows for the allocation of larger position sizes." Clara Medalie, director of research at crypto data provider Kaiko, echoed this view, saying that the new The record is "an important psychological milestone" and "a testament to cryptocurrencies' extraordinary ability to rebound and continue to persevere in the face of significant resistance."

The bull market cycle is accelerating

Speculations about the future price trend of Bitcoin are rampant, and some analysts Consider whether the recent pre-halving peak accelerated the usual market cycle.

Historical data shows that it traditionally takes about 500 days for Bitcoin to reach a new all-time high after a halving. This departure from the norm suggests that we may be entering a new era of Bitcoin price action.

The cryptocurrency community remains divided over the impact of the recent price correction and its impact on future market trends. Some analysts believe Bitcoin may experience sideways moves before continuing its upward trajectory.

At the same time, there is some speculation that the potential impact of Bitcoin ETF spot inflows and other market factors is a key factor in determining Bitcoin's path forward.

Institutions have begun piling into the sector since the launch of spot Bitcoin ETFs in January, which have posted record performance over the past six weeks of trading , as of Tuesday's close, spot Bitcoin ETF trading volume once again hit a new historical record, reaching $10 billion.

Alex Thorn, director of research at Galaxy Digital, said: "Bitcoin has once again hit an all-time high, showing that it will never go away. In its 15 years of existence, Bitcoin has It has experienced four retracements of more than 75%, but rebounded sharply each time."

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