Bitcoin Price Drops to $65,110 Amid Market Volatility
Bitcoin’s Price Plummets
In a swift downward movement, Bitcoin (BTC) saw a significant drop to $65,110 on Friday after briefly touching the $71,000 mark. As of now, Bitcoin has recovered slightly to $67,553, marking a decrease of over 5% in the last 24 hours.
Market Predictions Come True
The recent price crash from $71,000 to $65,000 took many by surprise in the cryptocurrency market. However, on-chain data had already hinted at this downturn. Crypto research firm Kaiko had warned about increasing near-term volatility, with implied volatility for upcoming expiries rising from 59% to 71% within two days.
Warning Signs Ignored
Despite two key indicators signaling weakness since late March, market exuberance may have led to their dismissal. Traders’ unrealized profit margins and the realized price have both indicated weakness, according to on-chain analytics firm CryptoQuant.
Market Correction Continues
Bitcoin’s drop below $66,000 triggered liquidations amounting to $920 million in the past day. Concurrently, the S&P 500 and gold prices have retraced, hinting at broader concerns about CPI and inflation across different sectors.
Euphoric Phase in the Market
According to Glassnode, the market has entered a euphoric phase, with profit-taking on the rise. Comparatively, the current euphoria phase may be considered early, with previous cycles experiencing multiple price drops exceeding -10%, often reaching as deep as 25%. Bitcoin currently sits 8.32% below its all-time high of $73,750 set in mid-March.
This article was originally published on U.Today
