Bitcoin, the world's largest cryptocurrency, experienced a decline overnight and fell to $66,700 before making a partial recovery.
This significant 8% drop occurred as over $100 million in Bitcoin long positions were wiped out, marking a turbulent start to the day for digital asset investors.
CoinGlass data revealed that over $100 million in long positions were liquidated in the last 12 hours alone, and another $167 million in long positions were liquidated in the previous 24 hours.
Bitcoin's recent pullback from record highs has coincided with pressure on gold and other assets, including Wall Street's tech-heavy index Nasdaq.
Analysts attribute Bitcoin's pullback to a typical respite in the bull market after a period of rapid rise.
Greta Yuan, Research Manager at VDX, a Hong Kong-licensed exchange, commented on the correction, saying, “The recent increase in Bitcoin prices has been too rapid for the market to price it accurately, so the current correction is normal.”
Meanwhile, Adrian Wang, Founder and CEO of Metalpha, suggested that uncertainty in the market ahead of the mining reward halving next month could also contribute to the downward pressure on Bitcoin prices.
“The price correction indicates that the market has adjusted its expectations for Bitcoin given the uncertainties presented by the halving event,” Wang said.
Despite the recent decline, Singapore-based QCP Capital remains optimistic about Bitcoin's long-term prospects, suggesting that short-term selling is unlikely to have a lasting impact on the overall uptrend.
Bitcoin is trading at $68,000 at the time of writing.
*This is not investment advice.