Bitcoin Hits New Record High Before Sharp Decline

Bitcoin Hits New Record High Before Sharp Decline

• CRYPTO UPDATE: Bitcoin Surges to New ATH, Then Plummets by $5k

• Crypto Stocks Take a Hit Following Bitcoin's Volatility - What's Next for the Market?

Bitcoin soared to a fresh all-time high earlier today before swiftly reversing course, experiencing a significant drop in value. The surge to the ATH prompted a surge in selling pressure, with market analysis suggesting that the liquidation of leveraged long positions exacerbated the downward movement. Currently, Bitcoin is trading within yesterday's range, but if it breaks below yesterday's low of $62.3k, further selling pressure may ensue. However, there are positive indicators such as continued demand from Bitcoin ETF providers and the bullish pennant pattern, which points towards potential future price increases.

BITCOIN DAILY PRICE CHART

On the other hand, Ethereum has also retreated from its recent peak but has outperformed Bitcoin by approximately 6%. While Bitcoin has seen a surge in spot ETF buying since mid-January, Ethereum ETFs are still awaiting approval from the SEC. The SEC's recent resistance to Ethereum ETF proposals by BlackRock and Fidelity has left markets eagerly anticipating the decision on the VanEck Ethereum ETF, which is due by May 23rd. If approved, it's expected that the SEC will greenlight other ETF filings to prevent any 'first mover' advantages, as it did with Bitcoin ETFs.

ETHEREUM/BITCOIN DAILY SPREAD CHART

The volatility in Bitcoin has had repercussions on crypto-related stocks, with various losses recorded across the board. Coinbase, for instance, has retreated approximately 2.5% from its multi-month high yesterday,

COINBASE (COIN) DAILY CHART

while MicroStrategy has seen a steep decline of over 11% from its recent high. Despite this, MicroStrategy remains up nearly 75% since the beginning of the year.

MICROSTRATEGY (MSTR) DAILY CHART

Similarly, Bitcoin Miner Marathon Digital Holdings has experienced a 10% drop in today's session but remains relatively flat for the year.

MARATHON DIGITAL HOLDINGS (MARA) DAILY CHART