Bitcoin (BTC) experienced a significant price drop as the crypto market saw a wave of liquidations totaling over $661 million in the past 24 hours, impacting nearly 200,000 traders.
In the early hours of March 15, Bitcoin plummeted by 7.5% within a short period, falling from $72,000 to $66,500. Although the asset briefly rebounded to reach the $68,000 level, it was soon rejected and dropped further to around $67,500, where it currently stands, according to Tradingview data. This marks an 8.3% decrease from its all-time high of $73,737 on March 14.
The majority of the liquidations, accounting for 80%, were long positions, resulting in $525.2 million in liquidations within the past day. Short-position liquidations amounted to $136.5 million.
As a result of this market turmoil, the overall crypto market capitalization decreased by 7.3% in a single day, reaching $2.68 trillion with approximately $175 billion leaving the space.
Greeks Live, a provider of crypto derivatives tools, mentioned a recent shift in market tempo on March 14, suggesting that the narrative of ETF inflows may be changing. This sentiment was echoed by Pav Hundal, the lead analyst at Australian crypto exchange Swyftx, who stated that if ETF volumes continue to decline, there could be a correction back to the low $60,000 or high $50,000 levels.
Hundal expressed concern over the 48% decrease in Bitcoin ETF inflow volumes compared to the 14-day average on March 14.
Furthermore, data from Farside Investors revealed that aggregate spot Bitcoin ETF inflows were at a monthly low of just $133 million on the same day.
In light of these developments, CrediBULL Crypto, a prominent crypto trader and analyst, expressed that the recent drop is the anticipated correction that was foreseen. He shared his thoughts with his 380,000 followers on X, stating that there may be a little further to go, with Bitcoin potentially falling to the $63,000 to $64,000 range.
The release of economic data in the United States this week may have contributed to the price declines. The Producer Price Index (PPI) data exceeded expectations, leading to projections of sustained high interest rates by the Federal Reserve. Additionally, the Consumer Price Index (CPI) data earlier in the week, which was higher than anticipated, worsened economic concerns in America.
Asian stock markets also experienced a retreat on Friday following the disappointing U.S. economic data, as hopes for lower interest rates were dashed.
In the midst of this volatility, Vance Spencer, a permabull in the crypto space, emphasized the inevitability of crypto and expressed his unwavering belief in its potential.