The cryptocurrency market loses $398 billion in value, while bitcoin gains
In a tumultuous trading day on Wednesday, Bitcoin fell even further as it made an attempt to rally, momentarily falling below $61,000.
According to CoinDesk data, bitcoin has recovered to trade at a little over $63,900 by 7:20 a.m. ET, up around 1% from the previous day. Bitcoin had reached an intraday high of $65,716 earlier on Wednesday.
With a 124% increase in the last year, Bitcoin has had an incredible run. The largest cryptocurrency in the world reached a record high of slightly under $73,800 last week.
During a turbulent day of trading on Wednesday, Bitcoin fell even further as it made an attempt to rally, momentarily falling below $61,000.
Over the last year, Bitcoin has experienced remarkable growth, rising 124%.
Last week, the largest cryptocurrency in the world reached a record high of just under $73,800.
The sell-off of bitcoin is partially caused by profit-taking and significant withdrawals from the Grayscale Bitcoin Trust.
The cryptocurrency market loses $398 billion in value, while bitcoin gains
The spot bitcoin exchange-traded funds that were introduced in the United States in January and the impending halving, which is a scheduled event incorporated into the bitcoin code that essentially slows the supply of the digital currency onto the market, have both contributed to the price of the cryptocurrency. Halving has historically helped to maintain pricing.
Since the peak of the bitcoin market, the value of all cryptocurrencies has decreased by around $370 billion, as the value of other digital assets like ether and Solana has also dropped precipitously.
Latest Investing Breaking News
Norway’s best-selling automaker is Tesla.
The U.S. intelligence service is using Musk’s SpaceX to construct a network of spy satellites.
Unused Gas Reserves Might Revolutionize European Energy
Best Energy Stock to Buy in 2024
Most likely, profit-taking after a strong surge in cryptocurrency prices is contributing to the fall.
On March 12, there was a sharp increase in short-term holders selling their bitcoin for a profit, according to data from CryptoQuant.
Some momentum has come out of the bitcoin ETFs, which recorded a total of $154.4 million of net outflows on Monday, according to BitMEX Research. It was the first time the ETFs recorded net outflows since Mar. 1.
Grayscale Bitcoin Trust, or GBTC, logged $642.5 million of outflows, according to BitMEX Research, while the other ETFs posted modest or flat inflows.
GBTC has been criticized for its higher-than-average fees. However, Grayscale CEO Michael Sonnenshein told CNBC earlier this week that the crypto fund manager expects to bring fees on its Grayscale Bitcoin Trust ETF down in the coming months.
