Original - Odaily

Author - Nan Zhi

At 23:00 yesterday, BTC broke through 69,000 USDT in the short term, reaching a maximum of 69,080 USDT, surpassing the previous high of 69,040.1 USDT set in November 2021.

OKX market display,BTC only broke through the previous high for less than 1 minute, and then the overall crypto market experienced a rapid decline. At 3:55 in the morning, BTC once fell to 59,000 USDT, and ETH fell to a minimum of 3,179 USDT. As of the time of publication, the decline has been recovered. BTC is now trading at 63,300 USDT, with a 24 H drop of 7.8%. ETH is now trading at 3,524 USDT, with a 24 H drop of 3.5%.

CoinGecko data shows that the total market value of cryptocurrency fell to 2.47 trillion, a 24 H drop of 5.9%.AlternativeData shows that crypto users’ trading enthusiasm has dropped significantly compared with yesterday.Todays Panic and Greed Index is 75, with a rating of Greedy, while yesterdays greed index was 90 and the level was extremely greedy.A new high since February 2021。

In terms of derivatives trading,CoinglassData shows that in the past 24 hours, the entire network liquidated US$1.154 billion, of which long orders liquidated US$888 million, short orders liquidated US$266 million; BTC liquidated US$323 million, and ETH liquidated US$208 million.Binance BTC contract open interest is $6.66 billion, down 10.9% in 24 H, deleveraging is obvious.

Downside Force – Early Gainers Taking Profits

Why did it pull back so quickly after hitting a new high? Or related to profit-taking by early profit takers:

CryptoQuant data shows that before Bitcoin hit a new high and began to plummet, an address over 10 years old transferred 1,000 Bitcoins to Coinbase. CryptoQuant analyzed that the address was related to miners.

CryptoQuant analyst Bradley Park said in an interview: “Exchange order data shows that there is liquidity of 5-10 Bitcoins per $100 price range, and a sell-off of 1,000 Bitcoins is very likely to trigger a sharp price drop. Especially At another time like Tuesday, traders are waiting to short Bitcoin.”

Enthusiasm for trading in the ETF market is still rising significantly. YesterdayBitcoin spot ETF’s daily trading volume reaches $10 billion, breaking single-day trading volume record。Farside InvestorsData Display,GBTC outflowed $332.5 million yesterday, there are still three ETFs whose net flow data have not been disclosed. It has been disclosed that some of them had a net outflow of US$125.8 million yesterday, which constituted a correction pressure on the market. The final net outflow depends on whether IBIT is still buying heavily as it was in previous trading days. .

Rate returns health value

Before Bitcoin reached a new high of $69,000, many altcoin rates were as high as 0.2% ~ 0.4%, and some currencies were charged every 4 hours. Between March 1st and 5th, the average BTC rate was as high as 0.06%, showing the high leverage and mania in the market.

After the decline, the rates have returned to rationality to a certain extent. Currently, only one OGNUSDT perpetual contract rate exceeds 0.1%, the rate of 12 currency contracts exceeds 0.03%, and the BTC rate has also returned to 0.0207%. .

Adam, a researcher at Greeks.Live, posted on the Flash crash at the peak. In terms of options, against the backdrop of a 10,000-point plunge,The options IV of each major term declined slightly., ultra-short-term options are all declining, which is obviously different from the past market.

Which currencies are not affected?

Binance’s gain list shows that there are currently only 10 tokens that have gained more than 1% today, mainly small market capitalization currencies, namely:

SYN（28.7% ）、ERN（16.2% ）、WIF（12.6% ）、JST（8.2% ）、STRK（5.8% ）、AR（5.4% ）、FIS（4% )、LSK（3.3% ）、CELR（2% ）、BICO（2% ）。

Are the cows still there?

According to LD Research staff @kanazawa0x0,A range of funds already have allocations to IBIT issued by BlackRock, Germanys AV Balanced Fund, the largest holding, has an allocation weight of as high as 5%. Although the scale is less than 10 million US dollars, this is just the beginning, especially when ETF allocations with passive strategies have the characteristic of not referring to prices.

The giants are also continuing to apply for spot ETFs on Ethereum. TodayU.S. SEC delays decision on Fidelity’s Ethereum spot ETF application, yesterdayDelay on decision on BlackRock Spot Ethereum ETF, but it may also bring sustained growth like Bitcoin spot ETFexpected imagination spaceand the strength of capital inflows after approval.

The long leverage has been basically cleared after yesterdays plunge, and funds in the traditional market are still continuing to flow in. Major events such as halving and BTC L2 are imminent, and the bull market may have just begun.