Bitcoin surged to unprecedented price levels on Tuesday, surpassing $73,000 for the first time in its history. However, the ascent was short-lived as the price swiftly retreated, echoing recent peaks and dips.
Data from crypto exchange Coinbase reveals that Bitcoin reached a peak of $73,027 on Tuesday morning, surpassing its previous high of $72,702 recorded just a day prior. Last week, Bitcoin shattered its previous all-time high by surging above $69,000.
Following the momentary high, Bitcoin experienced a rapid decline, plummeting to $68,603, according to Coinbase. However, the cryptocurrency’s notorious volatility was evident as it quickly rebounded to $71,102 at the time of reporting.
This pattern of surging to new highs followed by swift corrections has become a familiar occurrence over the past week. Bitcoin’s price fluctuations have captured the attention of investors worldwide, with some opting to sell at peak prices, leading to temporary downturns before subsequent recoveries.
Despite the recent dip, Bitcoin has seen a remarkable 47% increase in value over the last 30 days, as reported by CoinGecko. The surge in Bitcoin’s popularity has been fueled in part by the introduction of spot Bitcoin exchange-traded funds (ETFs) in January, offering investors an alternative way to gain exposure to Bitcoin’s price movements.
The current price discovery phase of Bitcoin coincides with the anticipation of next month’s halving event, which occurs approximately every four years. During this event, the rewards for Bitcoin miners are halved, resulting in a reduction in the rate of Bitcoin’s supply growth. This scarcity could potentially bolster Bitcoin’s price further.
Amidst Bitcoin’s fluctuating fortunes, data from CoinGlass reveals that crypto positions worth $356 million were liquidated in the past 24 hours, with Bitcoin positions accounting for over $100 million of the total liquidations.
