Bitcoin (BTC), the world's largest cryptocurrency, recently experienced an impeccable surge, rising above $72,000 and hitting a new all-time high. However, Bitcoin has seen significant long-term liquidations as its price has recovered. Furthermore, crypto analysts have also pointed to a major correction in the future.
Bitcoin whales cash out profits
According to an observation by Ali Martinez, a popular crypto analyst on the X platform, Bitcoin whale addresses have been aggressively cashing out profits. He pointed to a screenshot from Glassnode and noted that the number of Bitcoin whale addresses with over 1,000 BTC has decreased. Over the past two weeks, the number of these Bitcoin whale addresses has decreased by 4.83%.
The large liquidations could lead to a massive drop in the price of Bitcoin. Additionally, according to Coinglass, $29.40 million worth of Bitcoin long positions were liquidated in the last 24 hours. Even though the amount is comparatively less than average long liquidations, its impact cannot be ignored as BTC price is currently at its peak.
Additionally, Michaël van de Poppe, another crypto analyst, praised Bitcoin’s recent price rally. He said: “Bitcoin hits a new all-time high and shows great strength.” However, Poppe underlined his move to altcoins in light of the BTC price rise.
The shift is attributed to the correction he expected in the Bitcoin price trend. Poppe expects a correction in BTC value of up to 20-30% and believes that switching to altcoins could provide a hedge against losses. Additionally, recent liquidations by Bitcoin whales could accelerate this correction.
Also Read: Bitwise CIO Expects Morgan Stanley and Wells Fargo to Join the Bitcoin ETF Craze Soon
BTC price hits all-time high
Bitcoin recorded a new all-time high of $72,850.71 on Monday, March 11. However, the cryptocurrency later experienced a slight dip and fell below the $72,000 mark. At press time, Bitcoin price was down 0.45% to $71,830.94 on Tuesday, March 12.
Due to the massive volatility caused by significant liquidations and decreasing whale inventories, BTC price fell into the red. Additionally, the 24-hour trading volume for BTC fell by 3.86% to $51.88 billion. It had a market capitalization of $1.41 trillion.
Additionally, Bitcoin options volume fell by 39.73% to $625.97 million due to options expiration, accelerating volatility. On the other hand, the BTC open interest number recorded a 1.35% increase to $36.36 billion, which is a positive development.
Also read: Bitcoin miners' daily revenue hits record high ahead of halving
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