Bitcoin Peaks at $69,210, Retracts 8% to $61,973

Key Points

• Bitcoin hit an all-time high of $69,210, then retracted by 8% to close at $61,973.37.
• The previous record was $68,982.20 on November 10, 2021.
• Bitcoin’s year-to-date increase was 45% at the time of reporting.
• Experts predict a 10%-20% correction due to leveraged position liquidations.
• Factors influencing Bitcoin’s value include U.S. spot ETF trading and the upcoming halving event.
• Bitcoin’s resilience shines through its recovery, with significant investment growth in 2023.

Bitcoin’s journey reached a milestone, setting a new record at $69,210 on a Tuesday morning. This peak surpassed its high of $68,982.20 on November 10, 2021. However, the celebration could have been more-lived. The price quickly retracted, closing at $61,973.37. This marked an 8% drop from its peak, showcasing the volatile nature of the cryptocurrency market.

Experts Predict 10%-20% Correction

Experts weighed in on this surge and its aftermath. Ed Tolson of Kbit predicted a steep correction between 10%-20%, highlighting the risk of cascading liquidations in leveraged positions. Conversely, Owen Lau from Oppenheimer acknowledged the rapid price rise but remained optimistic about BTC’s long-term prospects. Echoing this sentiment, Alex Thorn of Galaxy Digital praised BTC’s resilience despite past drawdowns. Clara Medalie of Kaiko viewed the record high as a psychological milestone, underlining strength amid challenges.

ETF Trading & Halving Event Boost Bitcoin

Several key developments have influenced Bitcoin’s value. Notably, the start of U.S. spot bitcoin ETF trading earlier in the year played a significant role. Furthermore, the anticipation of a tightening Bitcoin supply ahead of the late April “halving” event, designed to create scarcity, has been a critical factor. The recent recovery also stems from the U.S. regional banking crisis and speculation around ETF approvals from the U.S. Securities and Exchange Commission.

Investor Sentiment and Market Dynamics

The legitimacy of Bitcoin was under scrutiny following the failure of FTX, drawing parallels to a Lehman Brothers moment for crypto. Despite a 64% decline by the end of 2022 and hitting a two-year low amid FTX contagion fears, Bitcoin’s decentralised and scarce nature continues to attract investors. The momentum driven by retail interest, especially during new highs, has the potential to funnel more investment into Bitcoin and altcoins perceived as more affordable.

 157% Surge, Leads 2023 Crypto Recovery.

Bitcoin advanced 157% in 2023, leading the crypto recovery. BlackRock’s iShares Bitcoin Trust (IBIT) is a testament to this resurgence, surpassing $10 billion in assets under management. This milestone indicates the growing legitimacy and the increasing popularity of investments among a broader investor base.