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<p>The Bitcoin crash, after a rally to the $64,000 mark, has stirred both excitement and concerns in the crypto space. The Bitcoin price retreat after hitting nearly $64K on Wednesday has sparked speculations in the crypto market.</p>
<p>Meanwhile, the Bitcoin price has crossed the $60,000 mark for the first time since November 2021 and was only about 10% down from its ATH. However, amid the volatility, optimism persists, evident in the recent surge in Bitcoin price.</p>
<p>So, let’s explore the potential reasons behind the recent Bitcoin crash after its rally to $64K.</p>
<h2 id="key-reasons-behind-the-recent-bitcoin-crash">Key Reasons Behind The Recent Bitcoin Crash</h2>
<p>Several factors may have contributed to the recent retreat in Bitcoin price. Some of the prominent reasons include:</p>
<h3 id="investors-taking-a-cautious-approach">Investors Taking a Cautious Approach</h3>
<p>The recent retreat in Bitcoin’s price may find its roots in investors adopting a cautious stance amid the cryptocurrency’s unprecedented surge. While a flurry of factors including robust inflow into <a href="https://coingape.com/spot-bitcoin-etf-notes-largest-net-inflow-677-million-on-supply-shock/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Spot ETFs</a>, Michael Saylor’s Bitcoin accumulation, and optimism surrounding Bitcoin Halving propelled its gains, concerns over a looming correction loomed large.</p>
<p>Several market pundits, including <a href="https://coingape.com/matrixport-co-founder-warns-of-correction-after-bitcoin-hits-60k/" target="_blank" rel="noopener noreferrer nofollow">Matrixport’s</a> Daniel Yan, have sounded alarms over a potential 15% correction by April’s end, prompting some investors to exercise prudence. Notably, this cautious approach reflects a broader sentiment of wariness in the market, as participants brace themselves for potential downturns amid Bitcoin’s meteoric rise.</p>
<h3 id="profit-booking-opportunities-as-bitcoin-price-soars">Profit-Booking Opportunities As Bitcoin Price Soars</h3>
<p>As <a href="https://coingape.com/bitcoin-nears-60k-reason-why-btc-eth-xrp-pepe-price-rising-today/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin</a> surged past the $60,000 mark, investors saw an opportunity to capitalize on their gains. After a prolonged rally, reaching levels not seen since November 2021, many investors opted to book profits.</p>
<p>Meanwhile, the substantial increase in Bitcoin’s value over the past year prompted some to sell, locking in their profits and potentially contributing to the recent price crash. This profit-taking behavior reflects a common strategy in volatile markets, where investors seek to secure their gains amid uncertainty.</p>
<p>Thus, while the price retreat may signal a temporary setback, it also underscores the dynamic nature of <a href="https://coingape.com/glossary/cryptocurrency/" target="_blank" rel="noopener noreferrer nofollow">cryptocurrency</a> investing and the various factors influencing market movements.</p>
<h3 id="coinbase-outage">Coinbase Outage</h3>
<p>The recent crash in Bitcoin’s price can be attributed in part to the outage experienced by <a href="https://coingape.com/coinbase-suffers-technical-glitch-amid-ascending-bitcoin-price/" target="_blank" rel="noopener noreferrer nofollow">Coinbase</a>, a popular crypto exchange platform. This disruption, which caused a temporary halt in trading, led to a significant loss of market sentiment and triggered a massive sell-off.</p>
<p>Notably, within a mere 15 minutes, the outage resulted in a $100 billion loss in Bitcoin’s market capitalization. As Coinbase users found themselves unable to access their accounts, panic ensued, further exacerbating the downward spiral of Bitcoin’s price.</p>
<p>As reported by CoinGape Media, during the <a href="https://coingape.com/coinbase-outage-100-bln-wiped-off-in-bitcoin-market-cap/" target="_blank" rel="noopener noreferrer nofollow">Coinbase outage</a> between 12:15 p.m. ET and 12:30 p.m. ET on February 28, Bitcoin’s price plunged nearly 9% from $64,000 to $59,000. This abrupt pullback occurred just as Bitcoin was on the verge of reaching a new all-time high, intensifying the shockwaves within the cryptocurrency community.</p>
<p>Although the issue has since been resolved, the volatility injected into the market by the Coinbase outage serves as a stark reminder of the fragile nature of the cryptocurrency ecosystem.</p>
<h3 id="crypto-market-liquidation">Crypto Market Liquidation</h3>
<p>Another key reason behind the Bitcoin price crash could be the significant liquidation event within the crypto market, totaling a staggering $740 million. This massive liquidation, as per CoinGlass <a rel="noopener noreferrer nofollow" href="https://www.coinglass.com/LiquidationData" target="_blank">data</a>, involved 176,553 traders and underscores a bearish sentiment prevailing in the market.</p>
<p>Notably, Bitcoin led the liquidation list, with approximately $274 million liquidated over the past 24 hours, affecting both long and short positions. On long positions, the BTC liquidation totaled $104.53 million, while on the short position, $169.35 million was liquidated.</p>
<p>Among other cryptos, Ethereum noted liquidations of $116.08 million, followed by Dogecoin and Solana noting $50.68 million and $28.31 million respectively. This highlights the broad-based nature of the market downturn.</p>
<p>Notably, liquidations occur when exchanges close leveraged trading positions due to traders’ inability to meet margin requirements, further exacerbating market volatility.</p>
<h3 id="pce-inflation-anticipation">PCE Inflation Anticipation</h3>
<p>Some investors might have taken a pause ahead of the key PCE inflation data release. Given the higher-than-expected inflation data as seen in the <a href="https://coingape.com/breaking-us-cpi-inflation-eases-to-3-1-core-inflation-beats-market-estimates/" target="_blank" rel="noopener noreferrer nofollow">Consumer Price Index (CPI)</a> and Producer Price Index (PPI), concerns have escalated over the Fed’s potential rate-cut timeline.</p>
<p>However, economists anticipate a slight cooling in the annual <a href="https://coingape.com/wall-street-estimates-on-us-feds-preferred-inflation-gauge-pce-bitcoin-at-risk/" target="_blank" rel="noopener noreferrer nofollow">Personal Consumption Expenditures (PCE)</a> inflation to 2.4% from 2.6%, with a 0.3% monthly rise. The Core PCE, favored by the Fed, is expected to climb 0.4% monthly, while the yearly rate is forecasted to ease to 2.8% from 2.9%.</p>
<h2 id="optimism-prevails-despite-the-recent-bitcoin-crash">Optimism Prevails Despite The Recent Bitcoin Crash</h2>
<p>The <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin price</a> was up 5.78% to $62,550.93 as of writing, with its last 24-hour trading volume soaring 90.17% to $90.94 billion. Meanwhile, the crypto has touched a high of $63,913.13 and a low of $58,711.63 in the last 24 hours.</p>
<figure id="attachment_183308" aria-describedby="caption-attachment-183308" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="wp-image-183308" src="https://coingape.com/wp-content/uploads/2024/02/Bitcoin-Price-Chart-3.png" alt="Bitcoin Price Chart" width="755" height="526" srcset="https://coingape.com/wp-content/uploads/2024/02/Bitcoin-Price-Chart-3.png 998w, https://coingape.com/wp-content/uploads/2024/02/Bitcoin-Price-Chart-3-300x209.png 300w, https://coingape.com/wp-content/uploads/2024/02/Bitcoin-Price-Chart-3-768x535.png 768w, https://coingape.com/wp-content/uploads/2024/02/Bitcoin-Price-Chart-3-150x104.png 150w" sizes="(max-width: 755px) 100vw, 755px">
 <figcaption id="caption-attachment-183308" class="wp-caption-text">
  Bitcoin Price
 </figcaption>
</figure>
<p>However, despite concerns surrounding the recent Bitcoin Crash, optimism persists in the crypto market, bolstered by derivatives data. Notably, Bitcoin Futures Open Interest surged by 4.67% to 446.04K BTC or $27.87 billion, CoinGlass data <a rel="noopener noreferrer nofollow" href="https://www.coinglass.com/BitcoinOpenInterest" target="_blank">showed</a>.</p>
<p>Meanwhile, CME Exchange led with a 2.90% increase to 127.90K BTC or $7.80 billion, followed by Bybit with a 2.44% rise to 71.28K BTC or $4.49 billion. In contrast, Binance Exchange saw a 0.78% decline to 104.15K BTC or $6.56 billion.</p>
<p>Notably, these figures hint at underlying confidence amidst market volatility, providing a glimmer of hope for investors navigating uncertain terrain.</p>
<p>The post <a href="https://coingape.com/bitcoin-crash-key-reasons-behind-btc-retreat-after-rallying-to-64k/" rel="noopener noreferrer nofollow">Bitcoin Crash: Key Reasons Behind BTC Retreat After Rallying To $64K</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.</p>

Bitcoin Crash: Key Reasons Behind BTC Retreat After Rallying To $64K

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