Bitcoin falls sharply: correction after record growth?
On Friday, March 15, Bitcoin experienced a sharp drop, falling below $68,000. Over the course of the day, the flagship cryptocurrency asset fell in price by 8%, which was its most significant decline in the last few months.
The fall of Bitcoin also affected other cryptocurrencies. With the exception of Solana, all leading altcoins were also in the red zone. The total capitalization of the crypto market decreased by 6.4% to $2.7 trillion.
Experts are trying to understand the reasons for the fall. Greeks.live notes that Bitcoin’s correction coincided with the opening of the American trading session, while growth was observed during Asian hours. This could mean that the bullish sentiment that dominated the market after Bitcoin hit a new high has cooled somewhat.
BTC has once again encountered a $3,000 daily decline, with a recent change in market tempo, with the US trading session seeing the majority of declines, and the Asian trading session seeing gains.
— Greeks.live (@GreeksLive) March 14, 2024
The current narrative of ETF inflows may be starting to turn, with IV's of all… pic.twitter.com/c0zeKaKYxR
An Invest Answers analyst drew attention to an interesting pattern: after the start of trading in spot Bitcoin ETFs in January, the correction in the price of Bitcoin coincides with its purchases by exchange structures.
Like Clockwork - when the ETF's Buy #Bitcoin .
— InvestAnswers (@invest_answers) March 14, 2024
Spot the Pattern? Happening since Jan 12th pic.twitter.com/h6MyJAh98s
The fall of Bitcoin was a warning sign for investors. It is unclear whether this is a short-term correction or the start of a longer trend.