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Bitcoin extended its slide on Tuesday, dropping more than $10,000 from its all-time high last week.
The flagship cryptocurrency was last lower by 6% at $62,918.35, according to Coin Metrics. Last week it climbed to a record $73,679.
The move helped drag other cryptocurrencies lower. Ether lost more than 5% and was recently trading at $3,287.58 after topping $4,000 last week for the first time since December 2021 – a drop some analysts predicted following the network’s Dencun upgrade. The token tied to Solana fell 8%, dogecoin lost 7% and XRP slipped 2%.
Among crypto-related stocks in premarket trading, bitcoin proxy Microstrategy tumbled 10%, while crypto exchange Coinbase fell 5%. Mining stocks were down across the board, with the biggest ones, Riot Platforms and Marathon Digital, lower by 6% and 5%, respectively.
Bitcoin weakness began last week as traders began taking profits after it had soared roughly 70% from the start of the year to its peak last Wednesday. Data from CryptoQuant shows a massive spike in investors selling their bitcoin at a profit on March 12.
Additionally, that profit taking led to a spike in long liquidations of leveraged bitcoin positions. About $122 million in long liquidations occurred across centralized exchanges Monday, according to CoinGlass. Last week there was about $372 million in long liquidations from Wednesday to Friday.
The successful introduction of spot bitcoin ETFs in the U.S. earlier this year has been a key contributor to bitcoin’s rally, which began even before the ETFs were launched in anticipation of their regulatory approval. At the same time, interest from investors and higher demand for bitcoin has also led to increased leverage and heightened high-frequency volatility.
Investors and analysts have warned that traders should exercise caution in March as more volatile price action, combined with an increase in trading volumes, would lead to pullbacks from bitcoin’s long-term uptrend.
Chart watchers have mostly said bitcoin is on a path to new highs but could also see steep corrections along the way.