'Groundhog Day' in Crypto as Bitcoin Again Plunges Following New Record

The world's largest crypto briefly rose above $70,000 Friday, but immediately tumbled about 5% to below $67,000.

AccessTimeIconMar 8, 2024 at 4:27 p.m. UTC
Updated Mar 9, 2024 at 2:15 a.m. UTC
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  • Bitcoin's latest attempt at all-time highs met with large selling pressure on exchanges Friday, capping the rally beyond $70,000.
  • The decline mirrored Tuesday's correction from $69,200, but wasn't as severe.
  • Liquidations of leveraged derivatives trades reached $240 million during the day, less than Tuesday's $1.2 billion wipe out.

It's deja vu all over again for bitcoin (BTC) bulls, who for the second time this week barely had a few seconds to celebrate a surge to a new-all time high before prices quickly reversed sharply lower.

In the morning hours of U.S. trading, bitcoin took out the Tuesday record of about $69,200 and rose to $70,136, CoinDesk Bitcoin Index (XBX) data shows. But within seconds, selling took hold and less than one hour later, the price had tumbled about 5% to as low as $66,500.

At press time, bitcoin was trading at $66,950, down marginally for the day. The broader CoinDesk 20 Index (CD20) was modestly in the green.

Friday's decline from all-time highs liquidated $240 million worth of leveraged derivatives trading positions across all digital assets, much less than Tuesday's nearly $1.2 billion, according to CoinGlass. This was likely due to that the market wasn't as frothy with leverage as before the flush earlier this week.

Nearly 1,000 BTC of sell orders on Binance and OKX, worth some $70 million, posed an insurmountable resistance for further gains once bitcoin topped $70,000, quickly pushing the price lower.

BTC exchange orderbook (Coinglass)
BTC exchange orderbook (Coinglass)

To this point, today's reversal isn't as severe as the action on Tuesday, when bitcoin for the first time this week notched a new record high. Then, the price ended up tumbling as much as 14% before bottoming at around the $59,000 level.

UPDATE (March 8, 16:59): Adds liquidation data.

Edited by Stephen Alpher.

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Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.


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