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Bitcoin Dips 10% After Crossing All-Time High

BTC fell by over 3% after crossing the $69K mark, but the losses didn't end there.

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The wild ride for Bitcoin (BTC) investors continued overnight Tuesday, as the cryptocurrency OG surpassed its previous all-time high of $69K but failed to sustain its momentum, dipping to as low as $59,700 before pulling back to around $63K currently.

Traders were lining up to take profits, with intense selling pressure seen on Binance's order books. Sell orders worth 300 Bitcoins amounting to $20 million at $69,000 and 500 Bitcoins at $70,000 resulted in an immediate drop sending BTC's price to under $60K in one strike, Coinpedia noted.

Leveraged traders were hit the hardest, as $1.1 billion worth of derivatives trading positions were liquidated across all digital assets through the past 24 hours, according to CoinGlass data. Of this, $870 million were longs, or bets on rising asset prices.

Bitcoin's tumble also resulted in dips across the major tokens, with memecoins like Dogecoin (DOGE, -23.45%), Shiba Inu (SHIB, -25.8%), and Pepe (PEPE, -19.98%) among the hardest hit.

Still, BTC is still around 11% up over the past week, and 47% up over the past month. Bitcoin's dominance over the crypto market is currently 52.77%, a decrease of 0.42% over the day, according to Coinmarketcap data.

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"The dip was bought up very quickly and aggressively, and 60k proved to be a good support level. ⁠The desk thinks this is a good opportunity to buy topside vol (ie calls); we saw significant interest to buy Sep-Dec calls in both BTC and ETH on this dip," crypto trading firm QCP said Wednesday morning in a note.

Despite Bitcoin's 7% loss in value overnight, spot Bitcoin ETFs are still seeing strong inflows, and there is a halving event on the horizon, which could act as catalysts for a swift rebound.

"Investors should continue watching for the inflow of the Bitcoin ETFs and news around the halving event for cues on the market sentiment. Bitcoin could continue to rally higher after stabilizing," Lucy Hu, senior analyst at digital asset-based wealth management company Metalpha told Blockhead.