BlockBeats news, on March 15, Bitcoin fell below $67,000, and the 24-hour decline expanded to 8.18%.

Bitcoin has been consolidating at a high level for several days

Recently, the price of Bitcoin continues to rise, 3 On March 12, it exceeded US$73,000, continuing to hit a record high. In the following days, it fluctuated and consolidated above $70,000. On the morning of March 15, Bitcoin suddenly took a deep plunge. According to Tradingview data, Bitcoin fell below US$67,000. As of writing, the price was US$67,314, and the 24-hour decline expanded to 8.18%.

According to Coinglass data, US$220 million was liquidated across the entire network in the past 4 hours, of which US$186 million was liquidated for long orders and US$34.14 million was liquidated for short orders.

Why did it fall?

The community believes that the US Producer Price Index (PPI) data in February may be one of the important reasons affecting the trend of the crypto market. PPI rose 0.6% month-on-month in February, higher than economists' expectations of 0.3%, which means that U.S. inflation remains sticky and the Federal Reserve will likely maintain high interest rates for a longer period of time. Affected by this, major U.S. stock indexes fell. The S&P 500 fell 0.3%, the Dow Jones Industrial Average fell 0.4% and the tech-heavy Nasdaq Composite fell 0.3%.

JPMorgan Chase said in a report that Bitcoin's record rise means a growing bubble in risk assets, which may lead the Federal Reserve to delay this year's Interest rate cuts planned for later. Therefore, the disclosure of US economic data naturally makes the capital market take a conservative attitude towards the short-term fluctuations of Bitcoin.

Several analysts have pointed out that Bitcoin may enter a period of consolidation, even if a 20% correction is possible, as the momentum of setting new highs in the past two weeks begins to fade. .

In addition, ETF net outflows exceeded $200 million, and BlackRock IBIT also faced more challenges. On March 15, according to data from farside investors, the current capital inflow data of BlackRock IBIT has not yet been released, but with the release of Valkyrie’s BRRR data (net inflow of US$9.4 million), the current (not final) price of the U.S. Bitcoin Spot ETF data) net outflows reached US$212 million. BlackRock IBIT needed to see net inflows of over $212 million yesterday to maintain overall net inflows.

It may fall back to $50,000. A new high?

On March 1, Galaxy Digital founder and CEO Michael Novogratz said in an interview with Bloomberg that Bitcoin hit a record high and "significantly increased" at the end of the year. The rise may be preceded by some corrections.

Michael said: "If there is a correction, it will probably correct to around $50,000 and then hit new highs." Michael believes that compared with the recent bull market in 2021, Large institutional players are underleveraged in the current cycle, but retail traders are overleveraged.

On March 8, Bitcoin exceeded $69,000 for the first time, setting a new all-time high. However, it fell back by nearly $10,000 overnight, and the entire network liquidated $1.18 billion in 24 hours. The Bitcoin Volatility Index reached 78.81 at one point, close to its highest value in a year.

Related reading: "Bitcoin plummeted by US$10,000 after hitting a record high. Is a severe correction a sign of a bull market? 》

Regarding Bitcoin’s plunge, the founding partner of Matrixport also said on social media platforms, “In a bull market, 5% of healthy lightning A crash is quite healthy."

Markus, an analyst at Matrixport and a researcher at 10X Research, also predicted that Bitcoin would reach $125,000. There is still a certain distance from this number, so there is no need to worry too much about a sharp retracement in the bull market, especially when Bitcoin reaches a new historical high, retracement is also a natural phenomenon.

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