Bitcoin continues to fall in price

The world's largest cryptocurrency fell below $65,000, its lowest level since the beginning of the month, shaking for the third consecutive day after a period of hot growth.

Since March 15, the Bitcoin market price has been on a downward trend. After losing the $70,000 mark, the currency has continued to fall in price. By around 2 p.m. today, Bitcoin had fallen below $65,000 per unit, the lowest price in the past 11 days. At times, the currency retreated to nearly $64,500.

The sharp decline comes after just one week of active trading in the market. During the week, Bitcoin reached an all-time high of $73,750 on March 14. However, the current level is still nearly 60% higher than at the beginning of the year.

While many experts dismiss the argument that Bitcoin is correcting, data analytics platform Cryptorank still believes that the prolonged price decline is causing greater damage to the market, spreading to alternative coins (altcoins).

This is reflected in the more than 151,000 people who have had their digital assets liquidated in the past 24 hours. In total, more than $426 million in assets have been liquidated, with Bitcoin being the largest.

The world’s largest cryptocurrency’s price drop also affected Ether, with liquidations totaling nearly $48 million. The coin is also down more than 7% in value. Altcoins like Binance Coin are down 9%, while Solana and XRP are down nearly 7%.

Liquidation occurs when an exchange closes a leveraged position, losing some or all of the margin if the investor does not have enough funds to cover the loss on the position. Large liquidation events often mark local tops or bottoms in an asset's price.

Bitcoin could see a correction in the short term, according to analytics firm Swissblock. “Nothing goes up in a straight line, including Bitcoin. A correction seems to be coming,” it said.

Matrixport, a cryptocurrency investment service, also noted that the bull run is running out of fuel and predicted a period of divergence. The market still has room to rise, but technical indicators are overbought and Bitcoin is at a high price. These are indicators that the market needs to consolidate before rising again.

Despite the cooling of the market price, many analysts expect a recovery to come soon for Bitcoin. Among the catalysts, Bitcoin spot ETFs still play a major role as capital inflows are steady. Cryptorank said that because of this, the current price correction is not too strong. According to the prediction of Mike Novogratz - founder of investment fund Galaxy Digital, with the demand for ETFs maintained, Bitcoin's valuation will always be high and there is very little chance that this currency will fall below $ 50,000.

The halving event, which cuts miners' rewards in half, will also stimulate demand, while supply could further tighten. Bitcoin has rallied during the three previous halvings, most recently in 2020.

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