On a tumultuous day for the cryptocurrency market, the value of bitcoin plummeted, leading to the liquidation of more than $661 million of the cryptocurrency, affecting around 200,000 traders.
As a result of the sharp drop, the price of #bitcoin fell 7.5 percent from $72,000 to $66,500 in just a few hours of trading on March 15.
Despite a brief recovery to $68,000, the #cryptocurrency met resistance and fell 8.3% from its March 14 peak of $73,737 to around $BTC The bulk of the liquidations (80% or $525.2 million) came from long positions, while short positions were liquidated for a total of $136.5 million.
These sales contributed to a 7.3% decline in the total cryptocurrency market capitalization, which fell to USD 2.68 trillion as about USD 175 billion left the market.
On March 14, Greeks Live, which provides cryptocurrency derivatives tools, commented on the "recent change in market tempo," pointing to a possible shift in the flow of funds into exchange-traded funds (ETFs).
Pav Hundal, chief analyst at Swyftx, expressed concerns in an #interview with Cointelegraph about the possibility of a correction to the low 60,000s or high 50,000s if #ETF volumes continue to decline.
He noted concerns about high-profile inflation data and a notable 48 percent drop in Bitcoin ETF inflows compared to the 14-day average, which could signal a significant market correction.
According to Farside Investors, inflows into the Bitcoin ETF hit a one-month low of just $133 million in 14 days.
Crypto trader and analyst CrediBULL Crypto told 380,000 X subscribers that the recent market downturn was expected and suggested that bitcoin could fall even lower to US$BTC He noted that the drop has wiped out much of the open interest built up in the derivatives market.
The fall appeared to accelerate following the release of economic data from the US, including better-than-expected Producer Price Index (PPI) data, which indicated that the US Federal Reserve may keep interest rates high.
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