Bitcoin surged up to 14% late on Wednesday, briefly reaching $64,000 – its first move above $60,000 since November 2021 – before retracing some of its gains.
The increase in Bitcoin’s prices faced a downturn due to significant sell-offs affecting cryptocurrency traders, currently trading at around $62,000. This market drop coincides with the U.S. government converting Bitcoin worth a billion dollars, confirming a robust market correction.
Bitcoin’s rejection at the $64,000 level raises questions about the dynamics within the cryptocurrency market. Despite its upward momentum, several factors could contribute to this rejection. The rapid rise to $64,000 led to a market buying peak, and investors began expressing concerns about the sustainability of these elevated prices without substantial corrections.
Consequences of Bitcoin’s Rejection at $64,000:
Bitcoin’s bull run started in March, with its fervent activity on Thursday placing it in the largest monthly gain since almost three years. Massive gains are further bolstered by capital flowing into Bitcoin, currently on the verge of reaching a new all-time high.
Bitcoin, the world’s largest cryptocurrency, has witnessed a continuous price surge, reaching $64,000. It’s worth noting that Bitcoin’s price is currently hovering about 10% away from reaching an all-time high, a development generating significant anticipation among investors.
Investors rush to buy cryptocurrencies fearing missing potential price increases, reminiscent of the booming cryptocurrency market in November 2021, where core cryptocurrency assets reached a record level of around $69,000.
Bitcoin’s value has more than quadrupled since the beginning of the year, recovering from a 64% drop in 2022. After a series of controversies and setbacks, casting doubts on the sustainability of digital assets, this recovery is remarkable.
Meanwhile, sudden price fluctuations led to losses for both bullish and bearish traders.
Before the April halving event, which occurs every four years and reduces token production rates and mining rewards by half, an increasing number of traders began investing in Bitcoin.
During the chaos, cryptocurrency traders witnessed liquidations totaling $638 million across all cryptocurrencies in just over 24 hours, with $391 million occurring in the last four hours. CoinGlass indicates that approximately $55 million from recent liquidations affected an assortment of obscure alternative currencies, while $96 million was directly liquidated in BTC transactions.
During the past 24 hours, a total of 168,988 traders were liquidated. The most significant individual liquidation, valued at $9.45 million, occurred on OKX during a BTC-USDT transaction.
Bitcoin Market Performance
As of now, the current value of Bitcoin (BTC) is $61,300.59, reflecting a 1.9% decrease since yesterday and a 0.6% increase in the last hour. Bitcoin has gained 20.0% in value compared to seven days ago.
The total value of the cryptocurrency market globally is $2.39 trillion, representing a -0.09% change in the past 24 hours and a 111.5% change over the past year. Currently, Bitcoin (BTC) holds a market value of $1.2 trillion, indicating a dominance of 50.34%. Simultaneously, stablecoins have a market value of $143 billion, or 5.99% of the total cryptocurrency market value.
According to CoinGlass data, the sudden price drop led to millions in liquidation across all digital assets in just over 24 hours, resulting in the wiping out of leveraged derivative trading positions.
The recent actions taken on Wednesday and Thursday are expected to be the most significant losses since August of last year when a sudden drop in Bitcoin’s value to $25,000 erased a billion dollars from cryptocurrency derivative positions across all currencies. The short (betting on price declines) and long (betting on price increases) positions were equally affected by liquidations, as cryptocurrency prices surged and then declined.
Analyst Ali Martinez emphasizes that Bitcoin faces no significant resistance in the near future. On the contrary, a substantial support level is evident within the price range of $54,300 to $56,200. A total of 903,540 addresses have accumulated nearly 500,000 Bitcoins within this specified range, serving as an indicator of strong buying activity and reinforcing Bitcoin’s support levels.
Market Decline and U.S. Government Bitcoin Transfer:
The market decline coincides with the U.S. government converting Bitcoin worth a billion dollars. This might suggest that the U.S. government is ready to exert selling pressure on Bitcoin. The billion-dollar sale represents less than 0.01% of Bitcoin’s total market value.
Edward Snowden, a whistleblower, suggests that the U.S. government could secretly acquire Bitcoin this year in an attempt to reduce the national debt.
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