Bitcoin (BTC) has experienced a 6.3% increase,
reaching $67,500 per coin this week, while Ethereum (ETH) rose by 8.9% to
$3,790. On March 5, Bitcoin set a new all-time high at $69,340 but quickly
rolled back during the same day, resulting in crypto investors losing around $1
billion. Approximately 87% ($870 million) of trades were closed automatically
due to stop-loss orders. Some short trades were closed when prices hit the new
all-time high, indicating that the majority of investors believe BTC will
continue to climb.
The subsequent 13% decline to $59,665 became
the largest since August 17, 2023, when prices dropped to $25,000. Despite some
investors viewing this drop as a correction or reversal signal, it's worth
noting that a similar situation occurred last August, setting a low point from
which Bitcoin initiated a 179% rally. This pattern might repeat, suggesting a
potential consolidation in the coming weeks followed by a correction.
Record trading volumes in recent days further
support this scenario. On March 5, the trading volume of Spot Bitcoin-ETFs
shares reached $10 billion. Among the four largest ETFs by trading volume, IBIT
from BlackRock, with $3.8 billion, was notable. ProShares Bitcoin Strategy ETF
(BITO) and Spot Bitcoin-ETFs reported a significant decline in capital inflows
last week. Grayscale Bitcoin Trust (GBTC) reported $492 million of capital
outflows.
However,
BTC prices may set another all-time high around $70,000 before a correction, as
many crypto enthusiasts have opened short trades after BTC retreat.
Meanwhile,
the U.S. Securities and Exchange Commission (SEC) alleged Binance.US was not
abiding by the terms of a consent order. Binance.US did not prove to the
SEC that Binance global employees did not have access to U.S. customers' assets.
Binance responded that everything is transparent and that it had answered all
of the SEC's questions, and further requests were exceeding the consent
order's limitations. Another filling by the SEC could be another attempt
to oust China’s Binance form the U.S. jurisdiction. This regulatory pressure
may increase in any moment and amplify a correction in the crypto market.