Cryptocurrency market faced a challenging correction wave that caught many investors by surprise. According to leading macroeconomist and investor Henrik Zeberg, hopes are still alive for Bitcoin to initiate another rise. However, the recent sharp decline was a clear disappointment for many investors, as the evening brought substantial losses.
Significant Drop in Bitcoin and Altcoins
Last night’s drastic price collapse surprised and worried many. The price of Bitcoin, the world’s largest cryptocurrency, fell to $65,086 on the cryptocurrency exchange Binance. However, as of now, it has recovered some of its losses and is trading just above the $67,500 level.
Ethereum (ETH) lost over 10% of its value in the last 24 hours, falling behind even Bitcoin. According to CoinGlass data, approximately $934 million worth of cryptocurrency was liquidated in the last 24 hours, with nearly $823 million of these losses stemming from long positions.
Reasons Behind the Crypto Retreat
The decline in cryptocurrency values is attributed to increased geopolitical risks in US stock markets. Meanwhile, gold saw a brief rally in the early hours. The severe crash in altcoins has pushed Bitcoin’s dominance to about 56%, marking the peak of the current market cycle.
A notable point is that this crash coincides with the upcoming halving event. This event, expected to occur on April 20, is predicted by many experts to cause a price drop in cryptocurrencies. However, Henrik Zeberg maintains his optimism due to the bull flag formation observed on Bitcoin’s four-hour chart.
Recovery After a Bloodbath
At this stage, we witnessed a bloodbath in the crypto market last night. However, such fluctuations are always part of the nature of the crypto world. Therefore, these market fluctuations call for investors to be even more cautious. The coming days will be critical to see which direction the market will take.
Now, to answer the question posed in the title. It’s difficult to declare the end of the bull situation for Bitcoin and cryptocurrencies. Recoveries are occurring after the rises. However, we experienced a day when Bitcoin crushed the altcoins. While BTC is now recovering, it seems that it will take some time for altcoins to bounce back.
