Bitcoin continues its ascent, surpassing $73,000 for the first time on Tuesday. However, similar to recent peaks, the price experienced a swift decline thereafter. According to Coinbase data, Bitcoin reached a high of $73,027, surpassing the previous record of $72,702 set on Monday. Last week, Bitcoin achieved a new all-time high, surpassing $69,000 on Tuesday.
Subsequently, the cryptocurrency saw a rapid dip, plummeting to $68,603, as reported by Coinbase. Despite its inherent volatility, Bitcoin has rebounded to $71,102 at the time of this writing.
This pattern has repeated several times over the past week: Bitcoin reaches a new high, experiences a quick dip as some holders sell at the peak, and then undergoes a correction. This cycle appears to potentially repeat every few days.
Even after the dip, Bitcoin has witnessed a 47% increase over the last 30 days, according to data from CoinGecko. The surge in Bitcoin’s popularity is partially attributed to the demand for spot Bitcoin exchange-traded funds (ETFs), approved in January, allowing investors to buy and sell shares akin to stocks. These funds have accumulated billions in Bitcoin.
Bitcoin’s recent price surge also precedes next month’s halving event, occurring approximately every four years, which reduces BTC rewards for miners by half. This event slows the growth of Bitcoin’s circulating supply, potentially benefiting its price.
Amid these fluctuations, crypto position liquidations reached $356 million in the last 24 hours, with over $100 million from Bitcoin positions alone, as per CoinGlass data.