The price of Bitcoin experienced a sharp decline, plummeting from $72,000 to $66,500 in early trading on March 15, marking a 7.5% decrease within hours. The asset attempted a slight recovery to reclaim the $68,000 level before facing rejection and dropping further to around $67,500. This downturn represents an 8.3% decrease from its recent all-time high of $73,737 on March 14. The volatile day in the cryptocurrency market saw liquidations surpassing $661 million over the past 24 hours, impacting nearly 200,000 traders.
Of the total liquidations, approximately 80% were from long positions, totaling $525.2 million, while short-position liquidations amounted to $136.5 million. This significant movement in the market led to a 7.3% decline in crypto market capitalization, with approximately $175 billion exiting the space.
The recent drop in Bitcoin price has raised concerns among investors, particularly regarding the decline in exchange-traded fund (ETF) volumes. On March 14, Bitcoin ETF inflow volumes were down 48% compared to their 14-day average, signaling a potential correction in the market. Analysts suggest that if ETF volumes continue to decline, there could be a correction back into the low $60,000 or high $50,000 levels.
The release of economic data in the United States, including Producer Price Index (PPI) and Consumer Price Index (CPI) data, has also contributed to the market downturn. Higher-than-expected PPI data has fueled projections for prolonged high rates from the Federal Reserve, while hotter-than-expected CPI data has exacerbated economic concerns in the country. This economic uncertainty has further intensified market volatility, leading to a retreat in stock markets across Asia.
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