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Bitcoin witnessed a decline on Wednesday, March 20, slipping to the level of $62,000 following significant sell-offs subsequent to the cryptocurrency’s recent record high.
According to CoinDesk data, Bitcoin traded slightly above $62,900, marking a decrease of approximately 2.5% over the previous 24 hours. Despite this downturn, Bitcoin has demonstrated an impressive performance, soaring by 124% over the past year.
The cryptocurrency previously achieved a record level of just under $73,800 last week, fueled in part by the introduction of Bitcoin exchange-traded funds (ETFs) in the United States in January.
However, the entire cryptocurrency market has witnessed a collective loss of approximately $400 billion in value since Bitcoin reached its all-time high. Other digital assets, such as Ethereum, have also experienced declines, with part of the decrease attributed to profit-taking following the steep ascent of cryptocurrencies.
Data from CryptoQuant reveals a significant surge in the number of short holders selling their Bitcoin for profit on March 12, contributing to the downward pressure on prices.
Amidst these developments, momentum from bitcoin ETFs has emerged, with a total of $154.4 million in net outflows recorded on Monday, according to BitMEX Research. This marked the first instance of net outflows for ETFs since March 1.
Grayscale Bitcoin Trust (GBTC) observed outflows of $642.5 million, as reported by BitMEX research, while other ETFs recorded modest or flat inflows.
The cryptocurrency market continues to navigate through fluctuations and investor sentiment shifts, with market participants closely monitoring developments in ETF flows and profit-taking activities for potential market impacts.
