 "Bitcoin cracks 8% in 24 hours after touching new high, may fall further")
Bitcoin retreated from its record high of more than $73,000 as the market witnessed a selloff and higher-than-predicted US inflation data signaled that interest rates may stay high.
In the last 24 hours, Bitcoin fell 8.1 per cent from its peak of $73,177 on Thursday to $67,689 at 2 pm on Friday. Ethereum, the second largest cryptocurrency, fell nearly 7 per cent to $3,708.
In one month, Bitcoin jumped over 40 per cent before cooling down and prompting a sell-off in the market.
According to data from Coinglass, $526 million worth of crypto wagers were liquidated in the past 24 hours: The highest in about two weeks.
"The number of addresses holding at least 1,000 Bitcoin rose from 1,486 on January 13 to 1,592 by March 5, then decreased slightly to 1,579 by March 13," said Edul Patel, chief executive officer (CEO) of Mudrex, a crypto investment platform.
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Moreover, the US Producer price index for final demand climbed 0.6 per cent in February. In January, it was 0.3 per cent.
"The (US) Fed is signalling that no interest rate cut could be expected at the May meeting," said Shivam Thakral, CEO at BuyUcoin.
Return for investors
Before the selloff, Bitcoin's total gains in 2024 so far were over 70 per cent. After the selloff, it has still given investors 60 per cent returns in 2024 alone. As compared to March 15, 2023, Bitcoin has gained 170 per cent.
Digital asset analytics firm Swissblock said recently that Bitcoin may fall to $58,000-$59,000. "A counter move seems to be near," it said in a Telegram channel.
Experts say that is froth in the crypto market after the recent rally. In an interview with Bloomberg Television, Michael Hartnett, Chief Investment Strategist at Bank of America, said that the market was showing signs of a "bubble".
According to the research team of CoinDCX, Bitcoin's next support level is at $65,500.