BTC quotes exceeded $69,000, setting a new all-time high (ATH). After reaching the peak, the price began to fall, dropping almost $8,000 within a few hours.
According to CoinMarketCap, Bitcoin recorded a new ATH of $69,170. CoinGecko didn’t fix the ATH, and the maximum value of BTC amounted to $68,912. These services calculate the average value differently using data from different trading platforms. For example, BTC hit $69,324 on crypto exchange Coinbase.
Based on data from CompaniesMarketCap, Bitcoin’s market cap exceeded that of the silver market for a while, rising to the eighth position in the list of the largest assets by capitalization.
Shortly after reaching peak levels, the price of Bitcoin plummeted rapidly, losing up to 14% within hours. CoinGlass reported that the growth and subsequent fall led to the liquidation of $1.07 billion worth of positions, with long positions amounting for $806.6 million. In addition, analysts at Santiment noted a $1.46 billion (-12%) decrease in open interest in Bitcoin. They believe that the sharp drop in open interest indicates that the “speculative excess” is temporarily removed from the markets.
Analysts attribute the current rise in BTC to spot Bitcoin ETFs. Their launch created a steady demand for BTC with no direct correlation to its current price, strengthening BTC’s status as a store of value and driving up its price. However, the indicators of spot Bitcoin ETFs are also growing in the background of new highs. On March 5, the volume of trading in shares of spot Bitcoin ETFs in the U.S. reached $10 billion, setting a new record. The inflow of funds for the day reached $562 million, the third-largest result since the fund’s launch.
Less than a week ago, spot Bitcoin ETFs attracted a record $673 million in a single day. This happened against the backdrop of strong growth in BTC quotes.
