Bitcoin hits new high in 1 minute, flash crash pulls back $10,000, is the bull still there?

Author: Nan Zhi, Odaily Planet Daily

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 conditions show that BTC only broke through the previous high for less than 1 minute, and then the entire crypto market experienced a rapid decline. At 3:55 in the morning, BTC once fell to 59,000 USDT, ETH dropped to as low as 3179 USDT. As of the time of publication, the decline has been recovered. BTC is now trading at 63,300 USDT, with a 24H drop of 7.8%. ETH is now trading at 3,524 USDT, with a 24H drop of 3.5%.

CoinGecko data shows that the total market value of cryptocurrency fell to 2.47 trillion, a 24H drop of 5.9%. Alternative data shows that crypto users’ trading enthusiasm has dropped significantly compared with yesterday. Today’s Panic and Greed Index is 75, with a rating of “Greedy” , while yesterday’s Greedy Index was 90, with a rating of “Extreme Greed”. A new high since February 2021.

In terms of derivatives trading, Coinglass data shows that in the past 24 hours, the entire network liquidated $1.154 billion, of which long orders liquidated $888 million, short orders liquidated $266 million; BTC liquidated $323 million, ETH liquidation hit $208 million. The open position of Binance BTC contract is 6.66 billion US dollars, a 24H decrease of 10.9%, and significant deleveraging.

Downward force - profit-taking by early profiteers

Why did it fall back sharply after hitting a new high? Or it may be related to profit-taking by early profiteers:

According to CryptoQuant data, when Bitcoin plummeted after hitting new highs, an address with a history of more than 10 years transferred 1,000 Bitcoins to Coinbase. . After CryptoQuant’s analysis, it was found that there is a correlation between the address and the miner.

In the interview, CryptoQuant analyst Bradley Park pointed out: “According to exchange order data, the trading volume is about 5-10 Bitcoins per $100 price range, while if there are 1,000 Bitcoins Being sold off may cause the price to fall sharply. Especially during periods like Tuesday, traders generally hold short positions, and it is expected that the price of Bitcoin may be under pressure."

ETF market trading enthusiasm is still showing With rising prices, the daily trading volume of Bitcoin spot ETF reached US$10 billion yesterday, setting a new single-day trading volume record. Farside Investors data shows that GBTC had an outflow of US$332.5 million yesterday. There are currently three ETFs whose net flow data have not been disclosed. Some have disclosed a net outflow of US$125.8 million yesterday, which constitutes a correction pressure on the market. The final net outflow depends on whether IBIT is still there. Like the previous few trading days, there is still heavy buying.

The fee rate returns to a healthy value

Before Bitcoin reached a new high of $69,000, the fee rate of many altcoins was as high as 0.2%~0.4%. In addition, some currencies are charged at four-hour intervals. Between March 1 and 5, the average fee for BTC was as high as 0.06%, demonstrating the high leverage and fanaticism of 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 rate of BTC It has also recovered to 0.0207%.

Greeks.Live researcher Adam posted on the Derivatives data represented by futures basis stalled completely, and the bull market FOMO crashed at its peak. In terms of options, against the backdrop of a 10,000-point plunge, the options IV of each major period fell slightly, and ultra-short-term options were all declining. , which is obviously different from the past market."

Which currencies are not affected?

The Binance gain list shows that there are currently only 10 tokens that have increased by 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%) .

Is the cow still there?

According to LD Research staff @kanazawa0x0, a series of funds have allocated IBIT issued by BlackRock. The allocation weight of Germany’s AV Balanced Fund, which holds the largest position, has reached as high as 5%. Although The scale is less than 10 million U.S. dollars, but this is just the beginning, especially when the ETF allocation of passive strategies has the characteristic of not referring to prices.

The giants are also continuing to apply for Ethereum spot ETFs. Today, the US SEC postponed its decision on the Fidelity Ethereum spot ETF application. Yesterday, it postponed its decision on the BlackRock spot Ethereum ETF, but it may also For example, Bitcoin spot ETF brings sustained expected imagination and the power of capital inflow after approval.

The long leverage has been basically cleared after yesterday’s plunge. 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.

The above is the detailed content of Bitcoin hits new high in 1 minute, flash crash pulls back $10,000, is the bull still there?. For more information, please follow other related articles on the PHP Chinese website!