Bitcoin had successfully managed to reach its all-time high of more than $60,000 during this weekend but declined under $60,000 this Sunday. On the other hand, the inflow of stablecoins has been demonstrating that the price drop is not a huge concern.
Bitcoin got big gains before sliding under $60k on 14th March right after they made a record high at $61,950 as confirmed by Binance. Nonetheless, the data of on-chain has suggested that this upward trend has chances of continuing till the near-term.
The short-term trend is indicating an increase in the deposit of stablecoins into exchanges which is greatly optimistic for BTC. The high rates of funding along with the overcrowded market are leading to a pullback in prices. However, the arrival of relegated capital in the cryptocurrency market might further drive the Bitcoin momentum further up.
The Reason Behind Bitcoin’s Declining Below $60k
The market interest had naturally increased after BTC successfully hit its record high. The high net-worth investors as well as the whales found it to be the ideal opportunity to profit from their positions owing to the reason that there was a huge amount of liquidity present in the ongoing red-hot market.
According to the report of Filbfilb, the market of high futures with funding rates along with exchanges from BTC deposits was seen to be quite high prior to the decline. The BTC futures market employs the method known as ‘funding’ in order to attract traders according to their market balance. Due to this, the rate of funding increases, and the long BTC becomes expensive for these traders.
Stablecoin inflow is likely to spike the rally for BTC. After this happens, the relegated capital will start looking positive and BTC will go upwards again.
