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Bitcoin (BTC) had a volatile 24 hours, reaching as low as $68,830 on the Binance crypto exchange before recovering some losses.
Quick Termination Data
Although BTC is trading near its all-time high (ATH) of $73,737, yesterday’s rapid price decline casts doubt on whether the top digital asset will be able to record a new ATH.
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According to CoinGlass data from crypto liquidations trackerMore than 296 million active positions were closed in the last 24 hours.
About 77% were long positions, indicating that traders were betting heavily on BTC’s continued rise. Binance saw the most liquidation at $124 million, followed by OKX at $74 million and Bybit at $65 million.
Among digital assets, Bitcoin led with over $97 million in positions, followed by Ethereum (ETH) with $47 million, and Solana with nearly $17 million.
According to yesterday’s decline, the total crypto market is down about 3.5%, currently worth $2.48 trillion. It is worth noting that although BTC is close to its ATH, the total crypto market is still far from its $2.98 trillion ATH recorded in November 2021.
The gap between BTC’s performance and the overall market cap suggests that altcoins have not kept pace with BTC’s recent gains, contributing to the divergence. This may also reflect the sentiment of a cautious investor, who favors BTC over altcoins in uncertain times.
At the same time, it suggests that there is still a lot of room for growth in altcoins, which could tempt some risk-seeking investors to accumulate altcoins in the hope of extraordinary gains relative to BTC.
That said, Bitcoin dominance – a metric that measures the share of the overall crypto market commanded by BTC – is slowly rising towards 60%. BTC’s dominance could spell disaster for altcoins that already trail BTC in price action.
Can Bitcoin Still Hit ATH?
The question on the minds of crypto enthusiasts is whether BTC will achieve a new ATH during this rally. The answer is not straightforward.
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Factors supporting a potential new ATH include increased the probability of Donald Trump becoming the US president who won the election, the consequences of the decline of BTC, increased income to BTC exchange traded funds (ETF), and low interest rate environment.
On the contrary, sentiment indicators such as the Fear and Greed Index suggest that the market is still in the ‘greed’ phase, indicating that there may be more pain in the market before the next leg up.
Regardless of the outcome, the crypto market will likely remain volatile in the coming days. However, long-term BTC holders don’t seem as shocked by this prospect, as profit-taking he sat down muted if digital assets exceed $71,000.
At press time, BTC is trading at $71,524, up 0.6% over the past 24 hours, with a reported market capitalization of $1.41 trillion.
Featured image from Unsplash, Charts from CoinGecko, CoinGlass, and Tradingview.com
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