The cryptocurrency market witnessed a significant downturn as itcoin">Bitcoin plummeted below the $67,000 mark on Tuesday. This price drop erased gains from the previous week and led to substantial liquidations across the broader crypto landscape.
Data reveals that itcoin">Bitcoin is currently trading around $66,139, down over 4% on the day and 6% for the week. The wider crypto market followed suit, with the total market capitalization shedding over $122 billion, a 5.2% decline to $2.6 trillion.
Virtually all major cryptocurrencies, barring stablecoins, experienced losses overnight. Ethereum dropped by more than 6% to $3,331, while Aptos and itcoin">Bitcoin Cash saw the most significant declines among the top 30 tokens, plunging 13.5% and 9.9%, respectively.
The market downturn was accompanied by over $426 million in liquidations across various platforms in the past 24 hours, with a staggering $342 million attributed to long liquidations. itcoin">Bitcoin alone witnessed over $90 million in long positions liquidated overnight.
This price dip coincided with the U.S. dollar index (DXY) reaching a high of 105 for the first time this year, reflecting a strong dollar against major foreign currencies.
The decline also occurred amid heightened volatility in the crypto market ahead of April’s itcoin">Bitcoin halving, where miners’ block rewards are slashed in half. While previous halvings have been followed by price surges, debates continue over whether this event is already priced in or if a “crisis of faith” among traders is looming.
This year’s halving is particularly notable, as itcoin">Bitcoin reached an all-time high ahead of the event following the approval of multiple U.S. spot itcoin">Bitcoin ETFs in January, potentially creating a supply crunch as these ETFs accumulate itcoin">Bitcoin.
As the market navigates through this turbulence, investors will closely monitor itcoin">Bitcoin’s price movements, the broader market’s reaction, and the impact of the upcoming halving and institutional capital inflows.
