Data from numerous sources showed that Bitcoin (BTC) - the world's leading cryptocurrency in terms of market cap - fell by approximately $2,400 Thursday morning after reaching an all-time high of $67,000 Wednesday night.
On the heels of a futures exchange-traded fund (ETF) being online on Tuesday and seeing more than $500 million worth of Bitcoin exposure offered on the first day of trading, bitcoin reached an all-time high on the cryptocurrency market.
However, traders rushed in Thursday morning to cash in on their winnings, sending Bitcoin's value plummeting by several hundred dollars.
Starting late Wednesday night, Bitcoin's price began to make a nosedive, falling from its previous high of $66,964 to as low as $64,100 this morning.
The crypto found support at its 34-period moving average, which is a technical indicator used by traders to determine market trends based on historical movements.
The crypto found support at its 34-period moving average, which is a technical indicator used by traders to determine market trends based on historical movements. Traders were able to retain the asset above the $64,800 price level in the most recent trading session.
Based on figures from the analytics platform Bybt, the move resulted in futures liquidations of more than $220 million. Uninitiated traders may be unfamiliar with the term "liquidation," which refers to when leveraged positions are automatically closed out by exchanges or brokers as a safety measure.
The highest single liquidation order ever placed on Bitmex was for a Bitcoin trade for $10 million, making it a record. Shorts, or traders who bet against growing prices, accounted for 66% of all liquidations, with cryptocurrency exchange FTX accounting for $58 million in Bitcoin futures liquidations alone.
Meanwhile, the Bitcoin sell-off put a halt to what had been a green rise across the cryptocurrency markets Wednesday night for a brief period of time.
Meanwhile, ethereum has rallied almost 9% in the past day, rising to more than $4,191 Thursday morning, putting it just $125 away from its all-time high set in May 2021.
Solana and Cardano, two of the most competitive cryptocurrencies, witnessed price increases of 17% and 7%, respectively, while Litecoin, the "digital silver," saw a price boost of 12%.
