With the price of Bitcoin falling below the level of $56,000, the market of cryptocurrency found itself under a wave of sales on the 7th of April. The sell-off took place on a market scale which also led to liquidations of around $1.4 billion with several analysts suggesting that this could be indicative of long traders overleveraging before Bitcoin could cross the unprecedented territory of $70,000.
One of the reasons why the market has gone so far ahead in the last week is the increase in the premium of Kimchi- which soon followed a decline of about 7% in the price of BTC. This has been perceived as a sign by traders of a market top.
Nonetheless, the market downturn hasn’t been much of a factor, as the on-chain data analysis displays that the cryptocurrency would be rallying towards a new all-time high with miners, whales, and holders in the long-term decreasing the stocks that they are selling.
Traditional Bitcoin Markets Near Record Highs
Most of the equity markets have been trading near their unprecedented highs last Tuesday with increasing job growth. They have also recorded major levels of service sector activity along with a manufacturing expansion which ended up resulting in optimism that led to increasing prices of stocks.
Overall, there have been some other altcoins that have successfully managed to rally around the day with Enjin, 1INCH, along with Origin Protocol reaching unmatched heights. Currently, the cryptocurrency has a market cap of around $1.90 trillion, with a dominance rate of around 55.6% for Bitcoin. Regardless, NASDAQ and Dow have already closed down at a rate of 0.06% with 0.16%- with the S&P 500 going up to close the day with a gain of 0.06%.