Volatility Struck Bitcoin upon Hitting New All-Time High Twice in a Week

By: Isha Das

Bitcoin reached a new all-time high for the second time in a week, leading to a marked sell-off, which detracted from recorded gains and echoed previous instances of volatility. Bitcoin surpassed its earlier record on March 8 during early US trading hours, pushing to an all-time high of $70,136. However, it soon fell 3% in under an hour due to significant sell pressure, pulling the wider crypto market with it.

Market movements were extremely turbulent, characterized by huge price swings. After reaching a new high earlier in the week, Bitcoin experienced a 14% decline before recovering. These price fluctuations mirror the speculative nature of digital currencies, and the evolving financial market conditions. Analysts observed significant sell orders on major exchanges which played a pivotal role in the sudden price reversal.

Market analysts suggest that the initial price boost was due to several factors, including optimism about the US economy, and the introduction of Bitcoin exchange-traded funds. These events are increasingly aligning crypto trading with traditional trading hours, demonstrating a growing merger of digital assets with traditional finance. This was backed by the latest US unemployment data, hinting towards a possible relief of inflationary pressures, and giving rise to speculation about the Federal Reserve's monetary policy.

Fed's upcoming policy decisions are under careful watching as the interplay between macroeconomic indicators and monetary policies reasonably influence the course of Bitcoin and the wider digital assets industry.