Bitcoin Plunges 12% Today, What Triggered the Correction?

• Bitcoin saw a sharp pullback from its all-time high of $73,750, falling to $65,630, reflecting a 12.3% decline.
• Over $810 million in crypto assets were liquidated from the global market.

After soaring to new heights, Bitcoin’s (BTC) bullish momentum has hit a snag as the cryptocurrency experiences a significant pullback. Following its record-breaking peak of $73,750 on March 14, Bitcoin displayed a sharp decline, plunging to $65,630, marking a 12.3% drop.

The sudden decline in Bitcoin’s price has resulted in over $278.77 million worth of BTC being liquidated in the last 24 hours. Also, a Binance deposit wallet moved 4,637 BTC, or about $329 million, to the Binance hot wallet. 

Additionally, El Salvador transferred its Bitcoin holdings to a cold wallet, totaling 5,689.69 BTC, valued at around $406 million. This nearly doubles the country’s previously known BTC holdings. Moreover, The real cause behind this sudden drop is that the latest U.S. CPI data is sparking concerns over inflation and Fed policy speculation.

Will BTC Decline More?

Despite the setback, Bitcoin swiftly rebounded above $68,634, maintaining a market cap of $1.34 trillion. However, experts are warning investors to brace for further price drops, with predictions suggesting Bitcoin could plummet to the $60,000 level, potentially before the much-anticipated halving rally.

At the time of writing, BTC was trading at $67,750 with a daily trading volume of $82 billion, still up around 85% in the last 24 hours.

Bitcoin (BTC) Price Chart (Source: TradingView)

The daily chart signals a shift in sentiment after the recent bullish surge. If Bitcoin fails to sustain a level above $65,000, the next critical support zones lie around $64,250 and $62,500, which could trigger more decline.

Despite short-term challenges, the weekly chart indicates a bullish breakout, instilling optimism for a long-term uptrend in the crypto market. A reversal or a much-anticipated bounce-back could propel Bitcoin to new all-time highs, with projections suggesting a potential surge to the $80,000 mark. 

Additionally, anticipation is building around the upcoming halving event, which might boost bullish momentum. People are also speculating that Bitcoin could reach $100,000 by the end of 2024.