Bitcoin Plummets Below $68k, $657M Liquidated
Quick Look
- Bitcoin experiences a significant correction, trading below $68,000 with a 7.5% decline in 24 hours.
- Over $657 million in positions were liquidated across the network, with a major impact on BTC longs.
- Ethereum also faces a downturn, dropping below $4,000 to trade at $3,700, marking a 7.3% decrease.
The cryptocurrency market experienced a sharp downturn during the early Asian hours on Friday, with Bitcoin leading the decline. This correction caused Bitcoin’s price to fall below the $68,000 threshold. Consequently, there was a significant 7.5% decrease over the past 24 hours. Following this, the market entered turbulent waters. This situation triggered an extensive wave of liquidations, totalling over $657 million across the network in the same period.
Coinglass data reveals an interesting trend. Over $522 million was liquidated in long positions, and $137 million in short positions were also cleared. Notably, Bitcoin longs accounted for $216 million of the total. This fact highlights the extent of bearish sentiment among investors.
Furthermore, the epicentre of these liquidations was on major exchanges, Binance and OKX. Specifically, $248 million and $236 million in positions, respectively, were eliminated.
Ethereum’s Parallel Plunge: Beyond Bitcoin’s Shadow
In tandem with Bitcoin’s dramatic correction, Ethereum, the second-largest cryptocurrency by market cap, also saw a steep decline. Ethereum’s price fell below the $4,000 mark, settling around $3,700. This represented a nearly 7.3% fall over the last 24 hours, mirroring the turbulent conditions that engulfed Bitcoin. The volatile market conditions underscore the interconnected nature of cryptocurrency assets, with Ethereum’s performance often influenced by broader market trends initiated by Bitcoin. This correlation between the top two cryptocurrencies highlights the market’s sensitivity to changes in investor sentiment and external economic factors.
The Silver Lining: ETF Inflows Offer a Glimmer of Hope
Despite recent market setbacks, certain segments of the investment community remain resilient, as demonstrated by activity in Bitcoin spot ETFs. On March 14, Bitcoin spot ETFs saw a net inflow of $132 million, with the BlackRock ETF IBIT leading the way. IBIT reported a single-day net inflow of $345 million, contributing to its total historical net inflow reaching an impressive $12.37 billion.
Conversely, the Grayscale ETF GBTC experienced a net outflow of $257 million on the same day, indicating a shift in investor preferences within the ETF landscape.
The VanEck ETF HODL also saw a significant single-day net inflow of approximately $137 million, pushing its total to $364 million. The total net asset value of Bitcoin spot ETFs now stands at $57.86 billion, with the net asset ratio peaking at 4.16%.
The steady inflow of investments into ETFs, despite market downturns, indicates a sustained belief in Bitcoin’s long-term potential. This trend provides a beacon of optimism for investors navigating today’s turbulent market.
