Is The Rally Over? Bitcoin Crashes Overnight, Hits $67,000 from $72,000 High

By John Lopez

Mar 15 2024, 11:20 AM EDT

Bitcoin, the world's most prominent cryptocurrency, experienced a sudden and significant drop overnight, tumbling from its recent high of $72,000 to $67,000.

This sharp decline has prompted questions about whether the recent rally in Bitcoin's price is ending.

Bitcoin Drops 7%, Hits $67,000 from $72,000 High

The cause of this sudden drop in Bitcoin's price remains unclear, but experts point to a combination of factors.

Speaking with CNBC, Kris Marszalek, CEO of Crypto.com, described the drop as a "healthy move," suggesting that it could be a necessary correction to remove leverage from the system. Bitcoin's history has been marked by rapid rallies and steep drops, highlighting the inherent volatility of the cryptocurrency market.

Despite this recent decline, Bitcoin is still up by an impressive 57% year-to-date. This growth was partly fueled by the introduction of new Bitcoin exchange-traded funds (ETFs) in the United States earlier this year. These ETFs have made it easier for more investors to gain exposure to Bitcoin and other cryptocurrencies.

Investors Now Concerned

However, the recent drop in Bitcoin's price has raised investor concerns. Cointelegraph reports that Bitcoin's price fell by roughly 7% overnight, leading to over $660 million in liquidations. The majority of these liquidations were from long positions, indicating that many traders were caught off guard by the sudden downturn in the market.

Higher-than-expected Producer Price Index (PPI) and Consumer Price Index (CPI) data fueled projections for prolonged high-interest rates from the Federal Reserve. This, coupled with disappointing economic data, has led to a retreat in Asian stock markets.

Looking ahead, analysts remain divided on the future trajectory of Bitcoin's price. Pav Hundal, lead analyst at Australian crypto exchange Swyftx, warns that if ETF volumes continue to decline, we could see a further correction in Bitcoin's price, potentially falling back to the low $60,000 or high $50,000 levels.

Crypto trader and analyst CrediBULL Crypto echoed this sentiment, predicting that Bitcoin could fall to around $63,000 to $64,000 in the coming days. However, others remain optimistic about Bitcoin's long-term prospects, pointing to its continued growth and acceptance within the mainstream financial world.