The cryptocurrency market took a nosedive this weekend, with Bitcoin leading the way in a significant slump. After briefly hitting a new all-time high of $73,800 earlier in the week, Bitcoin faced considerable sell-side pressure, falling to a 10-day low under $65,000.
Data from analysts showed this sharp drop was driven by “constant spot selling” on major exchanges like Coinbase and Binance. “Majority of the selling has been driven by takers (market selling),” according to one popular trader. Order book data highlighted zones between $60,000-$64,000 where some bidders were stepping in to buy the dip.
The sell-off wasn’t isolated to just Bitcoin with Ethereum dropping below the $3,500 mark after a 7% fall. Binance Coin, Solana, and Ripple also experienced significant losses, alongside Avalanche, Shiba Inu, Dogecoin, Polygon, and Polkadot, which all faced steep declines. This widespread downturn has erased over $300 billion from the total market cap since Friday, bringing it down to under $2.6 trillion.
However, despite the volatility, Bitcoin’s market dominance actually increased slightly, suggesting its position remains relatively strong compared to altcoins facing even steeper declines.
Some analysts are optimistic this pullback could present a buying opportunity, especially with the new Bitcoin ETFs in the U.S. set to reopen next week after the long weekend. “Waves of liquidity are going to rain down on the Bitcoin ETFs. Real money hasn’t even started allocating,” said one observer, hinting at rumors of fresh institutional capital preparing to enter the market.
Adding to the upside potential is the latest “futures gap” formed on the CME Bitcoin futures market. This $4,000 gap between the futures close of $69,135 on March 15 and the current spot price could provide an impetus for Bitcoin to recover in the coming week, in line with historical patterns.
The weekend’s heavy selling serves as a reminder of the volatile nature of cryptocurrencies. Whether this was simply a shakeout before the next leg higher or a more protracted bearish period remains to be seen. But the rapid changes in fortune highlight why investors must be prepared for such wild swings.
