Bitcoin (BTC) Dips Briefly Below $69,000 Before Dip-Buying Bulls Bouy Price Back to $70,500
The Bitcoin (BTC) price dipped as low as $68,500 on Thursday amid profit-taking, before dip-buying bulls buoyed the price back to $70,500.
Bitcoin hit fresh all-time highs in the $73,800s around the time of Thursday’s European open.
At its latest price of close to $70,500, it is trading 3.5% lower on the day.
Hotter-than-expected US PPI inflation data, which come on the heels of higher-than-expected CPI numbers earlier in the week, were cited as weighing on sentiment as the US dollar and US bond yields rose.
Despite the latest drop, the Bitcoin price is still up nearly 60% so far this year. Powering the upside has been incessant spot Bitcoin ETF buying from US investors.
Net ETF inflows were $700 million on Wednesday after hitting a new record high above $1 billion on Tuesday.
Another one.
The Bitcoin spot ETFs saw nearly $700 million in net inflow yesterday. pic.twitter.com/LNw7JQXjde
— Mads Eberhardt (@MadsEberhardt) March 14, 2024
But the approval of spot Bitcoin ETFs in mid-January has facilitated the build-up of significant froth in the BTC market.
Funding rates to open leveraged futures positions have been elevated since late February, suggesting strong bullish sentiment.
Meanwhile, open interest in the Bitcoin futures market has vaulted up from around $22 billion to nearly $35 billion since the 24th of February, a 60% jump during which time the Bitcoin price has rallied 36%.
That, coupled with surging funding rates, suggests a sudden surge in bullish speculator participation in the market, leaving the market vulnerable to leverage flushouts.
Despite the sudden price drop, carnage in the futures market has remained limited for now.
As per coinglass.com, only just over $100 million in leveraged long positions were wiped out on
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